Ethereum Whales Buy $4.78B in ETH Since July, But Is It a “Bagholder’s Dilemma”?

Ethereum has resumed its rally, climbing nearly 2% in the last 24 hours to cap an impressive 22% weekly gain. Now just 12% away from its $4,900 all-time high, the move appears to be fueled by a massive accumulation trend among the market’s largest players.

Why the big move?

On-chain data reveals a striking accumulation trend that began on July 10. According to blockchain analyst @EmberCN, over 1.1 million ETH, valued at approximately $4.78 billion, has been acquired by unidentified whales and institutions at an average purchase price of $3,584.

Another major whale, by on-chain analyst @ai_9684xtpa, has gathered 68,000 ETH ($120 million) since June 22 at an average price of $2,597, with the address recently withdrawing 8,745 ETH from Binance.

On August 8, @ai_9684xtpa reported that a single entity had 171,015 ETH, worth $670 million, across six addresses within just four days, sourcing the assets from institutional trading platforms such as FalconX, Galaxy Digital, and BitGo.

The accumulation spree continued with 49,533 ETH ($209 million) added in the past few hours alone. In total, the address has amassed 221,000 ETH ($955 million) in a week at an average price of $3,794, currently sitting on an unrealized profit of $116 million.

The Bull Case:

But not everyone is convinced this rally has legs. Bitcoin advocate and Jan3 CEO Samson Mow that many Ethereum of these investors will simply rotate back into Bitcoin once the price gets high enough.

Mow argued that Ethereum has historically served as a vehicle for investors to accumulate more BTC, warning that as the token approaches its record high, selling pressure, what he calls the “Bagholder’s Dilemma,” will likely intensify.

“Ethereum has always been a vehicle for those people to get more Bitcoin. It was true for the ICO, and it’s true now,” Mow said, dismissing the recent breakout in the ETH/BTC ratio as a concern for Bitcoiners. The ratio currently stands at 0.036, doubling from its April low of 0.018.

With ETH just a short rally away from breaking its all-time high, the coming weeks will determine whether the market aligns with Mow’s skepticism or ETH breaks above $5K for the first time.