ETH Whales Are Buying: Ethereum Eyes $4K With On-Chain Metrics Flashing Bullish

• Ethereum staking inflows surged by 309,000 ETH in the past month, highlighting long-term confidence among holders.
• Additionally, institutional interest through Layer 2 networks and reduced bearish hedge fund activity has contributed to Ethereum’s rally.

Ethereum’s price has experienced a decent revival in recent weeks. The price jumped from April lows of $1,385 to May highs of $2,700 before stabilizing around $2,600. This revival comes amid strong on-chain indicators and whale buying.

Ether Whales Snap Up ETH

One of the major supporting indicators of positivity is the spike in smart money activity. Statistics obtained from analytics platform Nansen indicate a massive increase in the number of experienced investors appropriately amassing ETH, as highlighted in the previous news story. The platform has tracked 1,922 smart money investors in ETH compared to April’s bottom of 1670. Moreover, the latest figure is the highest since February 2025.

Nansen also reported that the holdings increased to 123,615 ETH from 86,709 ETH in the month of April. These investors, often known for anticipating market reversals, began aggressive accumulation following Ethereum’s steep decline last month, as reported by CNF.

The other critical trend is the tremendous fall of ETH balances in centralized exchanges. CoinGlass data shows that balances dropped from 15.75 million on April 25 to 15.15 million by mid-May. Exchange outflows have been historically considered to be a positive signal that investors want to keep or stake their assets instead of selling them. Such a reduction of easily available ETH helps to make the asset scarce during periods of high demand.

The bearish sentiment is further overridden by the increase in Ethereum staking. In the last 30 days, the inflows increased by 309,000 ETH, worth about $813 million. It implies that there is long-term confidence among holders who are holding their tokens in the network to earn rewards instead of trading them.

Ethereum Price Technical Analysis Today

Technically, Ethereum price is approaching the making of a mini golden cross as its 50-day and 100-day Weighted Moving Averages come together to suggest a pick up in short-term momentum. Several other indicators also confirm a potential shift of fundamentals. The Average Directional Index (ADX) has advanced to 36, which usually indicates the formation of a strong trend.

Technical indicators also flash warning signals of a possible correction. Relative Strength Index (RSI) has penetrated into the overbought area, with a bearish divergence formation in which price prints an ascending trend while RSI prints a descending move. This is a mismatch that tends to bring retracements with Ethereum potentially falling back to a support area of $1,872 – $2,069 prior to another surge.

Meanwhile, a recent analysis by Bernstein gives structural and tactical drivers as Ethereum’s strengths. “Stablecoins are bringing back the focus on underlying blockchain networks becoming platform proxies,” the report stated. The fact that Ethereum is behind minting 51% of all stablecoins published shows that its role as foundational infrastructure is coming to limelight.

In addition, the increased institutional interest via Ethereum’s Layer 2 networks and the unraveling of bearish hedge fund holdings are fueling the rally. According to Bernstein, “Layer 2 chains use ETH for gas fees,” bringing organic demand. At the same time, the hedge funds that used to short ETH to hedge long positions in BTC and Solana have changed their minds.