Whales are on the move! Data reveals that large investors are accumulating Ethereum at an astonishing pace, with balances surging by 52%. Meanwhile, retail investors are offloading their holdings en masse. Experts suggest this historic pattern signals a "final compression" before a trend reversal, indicating Ethereum may have already hit its bottom.

A notable shift in Ethereum’s spot order activity suggests that institutional players are accumulating the asset at discounted prices—a behavior historically linked to potential trend reversals.

According to CryptoQuant, "whale" wallets holding 10,000 to 100,000 ETH have increased their balances by 7.6 million tokens since late April, marking a 52% jump. In contrast, retail wallets holding 100 to 1,000 ETH have reduced their holdings by 16%.

Following Ethereum’s drop to $3,000 in early November, spot trading volumes exceeding average levels have been observed multiple times.

ShayanMarkets, a CryptoQuant-certified analyst, noted that this pattern typically "marks the beginning of a trend reversal or the final compression phase before a major rally."

Shawn Young, chief analyst at MEXC Research, told Decrypt, "The likelihood of whales forming a local bottom remains high." He added, "This cycle closely resembles previous bottoms, characterized by large wallets absorbing sell-side liquidity from short-term holders."

Young highlighted Ethereum’s stability against Bitcoin at multi-month lows as a sign of relative strength. Additionally, daily trading volume has grown 25% since September levels, and staked ETH discounts have normalized after a $19 billion market cap wipeout on October 10—further supporting this outlook.

This market signal isn’t exclusive to Ethereum; it reflects broader shifts driven by improving macroeconomic prospects, including the potential resolution of one of the longest U.S. government shutdowns.

Lai Yuen, an investment analyst at Fisher8 Capital, told Decrypt, "Whale accumulation makes sense—we’re seeing the same with Bitcoin, as new entrants absorb selling pressure from 'old hands' who adhere to the four-year cycle theory."

Yuen stated, "If macroeconomic conditions remain favorable… Ethereum at $3,200 and Bitcoin at $98,000 are highly likely to form local bottoms."

He also emphasized, "Traditional finance remains optimistic about asset tokenization," noting that supportive regulations could provide further catalysts.

Yuen added that a formal crypto market structure bill could boost Ethereum’s price by enhancing regulatory clarity and dispelling uncertainty that keeps investors on the sidelines.

However, as previously reported, a government shutdown must end soon if bipartisan negotiations are to resume this year.

Risk Warning & Disclaimer: Markets are volatile; invest with caution. This article does not constitute personal investment advice and does not account for individual financial goals or circumstances. Users should assess whether the opinions herein align with their specific situation. Investments carry inherent risks.