Ethereum Whales Hit Record Holdings Amid Supply Squeeze

The Ethereum ecosystem is witnessing unprecedented accumulation by its largest holders, with wallets controlling between 10,000 and 100,000 ETH reaching a combined balance exceeding 21 million ETH. This milestone represents the highest level ever recorded for this investor category since Ethereum’s launch, according to data from CryptoQuant. The trend extends to even larger holders, with those controlling more than 100,000 ETH expanding their positions to roughly 4.3 million ETH. This accumulation has unfolded steadily in recent months, overlapping with Ethereum’s gradual move toward the $2,956 level despite a minor 1.1% drop recorded on Wednesday.

CryptoQuant’s analysis indicates that this accumulation wave reflects rising conviction among institutional-scale investors and other high-liquidity participants. The data suggests that Ethereum is currently in what market observers describe as a ‘sensitive phase,’ driven largely by aggressive buying from major investor groups. Historical patterns show that periods of heavy whale accumulation typically coincide with the creation of solid price bases, which have historically preceded major upward movements in Ethereum’s price cycle.

Concurrent with the whale accumulation trend, data from Binance reveals a continued drawdown of exchange-held ETH reserves. Since September, these reserves have been steadily declining, falling to approximately 3.764 million ETH by November. This decline indicates a broad migration of ETH away from trading platforms and into staking contracts or offline storage—a movement that reinforces the accumulation wave identified across whale groups.

The tightening supply on exchanges creates a structural dynamic that could amplify price movements when demand increases. As ETH moves from liquid exchange wallets to illiquid staking contracts and cold storage, the available supply for trading diminishes. This supply squeeze, combined with the record whale accumulation, points to what analysts describe as an important structural phase in Ethereum’s long-term outlook. The coordinated movement of ETH off exchanges suggests that large holders are taking a longer-term view of the asset rather than preparing for near-term selling.

Adding to the heightened whale activity, intelligence firm Arkham has spotlighted a significant shift in strategy by a Hyperliquid ‘OG Whale’ who previously generated close to $200 million in profits by shorting the market ahead of the October 10 crash. This trader, who has become notable over the past month for a streak of precisely timed shorts, has now turned strongly bullish on ETH, injecting an additional $10 million into an existing long position.

The move brings this trader’s total ETH long positions to $44.5 million, with the position showing gains of more than $300,000 within the first hour of establishment. This pivot from a previously successful short strategy to large-scale ETH longs indicates that this sophisticated market participant may now be positioning for an upward price move. The trader’s timing has proven accurate in recent months, making their current bullish stance particularly noteworthy for market observers.

Historical analysis of previous market cycles shows that periods characterized by heavy whale accumulation combined with declining exchange reserves have typically preceded significant upward price movements for Ethereum. The current data pattern mirrors conditions that have historically marked important inflection points in Ethereum’s market structure. With exchange supply tightening and deep-pocketed investors increasing their holdings, the foundation appears to be forming for what could become the next major bullish phase.

The convergence of these factors—record whale holdings, declining exchange reserves, and a notable trader’s pivot to bullish positions—suggests Ethereum may be entering a crucial structural phase. While short-term price movements remain volatile, with Ethereum experiencing a minor 1.1% drop mid-week, the underlying on-chain data points to strengthening fundamentals among the asset’s largest holders. Market participants will be watching closely to see if this accumulation phase indeed sets the stage for the next significant upward movement, as historical patterns would suggest.