Ethereum’s Silent Surge: Metrics Soar as Price Stays Grounded (For Now)

A new notes that while Ethereum price remains flat, “institutional investors continue accumulating and locking tokens at record levels,” suggesting that the market could be primed for a breakout.

Metrics include historical accumulation addresses, negative exchange netflows, and staking spikes, which are common indicators that Ethereum is being taken off the market and held for the long term.

Accumulation addresses (sort of special wallets that aren’t owned by centralized exchanges, with minimal or no Ethereum outflows) set a historical record in June. From the start of the month to June 30, it grew from 16.7281 million ETH to 22.7465 million ETH. This translates to a 35.97% increase in holdings in one month.

When it comes to whale and institutional accumulation, monthly highs were recorded in June, with approximately 6 million ETH added to long-term accumulation addresses and nearly 1 million ETH added to staking pools.

The average acquisition cost for this was $2,114.70, and ETH was trading at $2,565 on July 2, meaning these investors are sitting on an average 21.29% unrealized profit.

Additionally, total ETH staked recently surpassed 35 million (roughly 28% of the circulating supply), setting a new all-time high.

Despite all of this taking place, Ethereum’s price stayed range-bound between around $2,400-$2,700 during June. This could be due to low retail participation, market maker manipulation, and hedging.

As it stands now, ETH appears to be under strategic accumulation, primarily by large holders and institutions. Either way, historically, large-scale accumulation in combination with reduced liquid supply has been a precursor to Ethereum’s price rallies.

With more ETH locked up and absent from sell-side liquidity, even moderate demand could push prices upward. Some technical analysts note that the $2,700 price can be seen as the key breakout level.

The bottom line is that Ethereum is currently in a so-called ‘flight mode’, with strong evidence of structure build-up, yet the prices remain neutral. However, the stage is set for a potential boost, and if any catalysts emerge, we may see price advances.