Major Investors Accumulate Ethereum Amidst Price Uncertainty

Ethereum CRYPTO000ETH

As 2025 draws to a close, the Ethereum market presents a contradictory picture. On-chain metrics reveal substantial accumulation by large holders, even as the asset's price struggles to hold above the psychologically significant $3,000 level and technical indicators remain weak. This divergence raises questions about whether broader market sentiment is overlooking the network's underlying strength.

Economic activity on the Ethereum blockchain continues at a robust pace. The network's Total Value Locked (TVL) stands at an impressive $330.7 billion. Market analysts point to this high level of on-chain economic engagement, noting that the network's valuation remains closely tied to it, providing what some see as a historical anchor for the ETH price.

This fundamental vigor clashes with a discouraging technical setup. The price currently trades well below its 50-day and 100-day moving averages, which now act as resistance zones between $3,100 and $3,380. The Relative Strength Index (RSI) sits at 42.0, indicating a distinct lack of bullish momentum in the short term.

Silent Accumulation by Key Players

Despite ETH's price declining a further 1.42% on Friday, data indicates significant buying from major addresses. Since December 26, wallets holding substantial balances have collectively acquired nearly 300,000 ETH. This buying spree represents an investment of approximately $850 million.

A prominent example is treasury firm BitMine, which now holds over 4 million Ether. The company has reportedly begun its first staking activities on these holdings, aiming to generate yield from its massive position.

Supply Dynamics and Market Sentiment

A key headwind for Ethereum's price is its current inflationary supply trend. Under present network conditions, the burn rate only covers about 18% of newly issued ETH, leading to a net expansion of supply. This marks a stark shift from previous periods of high network activity, which resulted in deflationary pressure. Compounding this, more than 40% of circulating Ether is held at a loss, which may explain persistent selling pressure from discouraged investors.

Market sentiment among large players is mixed. While some are accumulating, others are rotating capital. Notable figures like Arthur Hayes have been reallocating funds within the decentralized finance (DeFi) sector. U.S. spot Ethereum ETFs have recently experienced outflows, and the Coinbase Premium Index has fallen to a one-month low, suggesting diminished demand from institutional investors in the United States.

The Roadmap for 2026

Technological development continues unabated. Following the Fusaka upgrade in December, core developers have outlined a concrete roadmap for 2026. The "Glamsterdam" upgrade is slated for the first half of the year, with "Hegota" announced for the latter half. These successive upgrades are focused on enhancing the network's scalability and overall efficiency.

Whether these technical advancements will be sufficient to reverse the current price weakness in the coming year will likely depend on a resurgence in user activity. A return to higher network utilization could reignite deflationary tokenomics, potentially providing the catalyst needed for a sustained price recovery.