Massive Inflows Signal Growing Confidence
Ethereum is making waves again. On February 7, accumulation addresses absorbed a record $883 million worth of ETH in just one day. This surge equals 330,705 ETH, marking the highest single-day inflow ever, according to CryptoQuant data.
What does this mean? Simple. Big players are stacking up ETH, signaling strong faith in its future. These wallets, known as accumulation addresses, don’t send out ETH. They only receive. This suggests long-term holding strategies, often linked to institutions and seasoned investors.
A Pattern of Price Surges
History often repeats itself in crypto. Back in February 2023, Ethereum saw an all-time high daily inflow of 244,000 ETH. The result? A price rally of nearly 35% within two months. A similar trend followed the July 2024 inflow spike.
Now, with the latest record inflows, investors are wondering: Is another rally around the corner?
Whales and ETFs Boost the Bullish Case
It’s not just long-term holders getting in on the action. Whale wallets holding between 10,000 and 100,000 ETH are growing their balances steadily. At the same time, U.S.-based spot Ethereum ETFs are seeing increased inflows, matching levels from November 2024. That period coincided with Donald Trump’s reelection, which spurred a pro-crypto sentiment across markets.
CryptoQuant analyst MAC_D notes that these massive inflows reflect expectations of regulatory ease, thanks to Trump’s crypto-friendly policies. Smart money seems to be accumulating aggressively, regardless of short-term price dips.
Challenges on the Road to $4,000
But it’s not all smooth sailing for Ethereum. The ETH/BTC pair is down about 75% since 2021, highlighting Ether’s struggle against Bitcoin. Competitors like Solana are also gaining ground. Solana’s rapid adoption has fueled a 1,025% rally in the SOL/ETH pair over the past two years.
Moreover, Ethereum’s transition to proof-of-stake (PoS) hasn’t reduced supply as much as expected. The ETH supply growth rate is near zero, showing that the Merge’s deflationary impact has stalled.
The Bottom Line
Despite these hurdles, many believe Ethereum is an “obvious buy.” Market analyst Coinvo and Abra CEO Bill Barhydt both see strong upside potential, with Barhydt predicting ETH could reach $16,000 during Trump’s presidency.
Will history repeat itself with another price surge? If accumulation trends hold, Ethereum might just be gearing up for its next big rally.
