Large Ethereum holders accumulate cryptocurrency ahead of a large-scale update

The ETH price briefly returned to the $ 1,900 mark for the first time since August 2022, and online data shows that whales are actively accumulating Ethereum ahead of the Shapella network upgrade.

According to the Santiment platform, social sentiment around Ethereum remains largely negative — despite reaching an 8-month high. Bears expect the asset’s price to collapse after 13 million ETH are unlocked when the Shapella update is activated. As of April 8, weighted sentiment, an indicator that compares the ratio of negative mentions of assets to positive ones, has dropped from February’s 7.21 to -0.19. It is noteworthy that large investors may consider this an ideal time to enter the market.

The ongoing accumulation of Ethereum by whales also confirms the possibility of a bullish scenario. The chart below shows that wallets with a balance of 1 million to 100 million coins started buying ETH when the weighted sentiment turned negative. Between February 12 and April 7, they purchased 2.4 million tokens worth about $ 4.4 billion.

If the trend continues, it could lead to the start of a price rally in the Ethereum price. In addition, the whales' actions may inspire ETH stakers to hold positions for more profit rather than sell immediately after the Shapella update.