Ethereum (ETH) is attracting deep-pocketed buyers again, despite weak price action, falling market dominance, and the lowest transaction fees in four years.
Whales have scooped up over $65 million worth of ETH in a 10-day window. The accumulation spree comes as Ethereum posts its fourth consecutive red monthly candle.
According to Merlijn The Trader, this sequence last appeared in the 2018 bear market—just before ETH rallied over 4,200%. He posed a question on X,
“$ETH: 4 red monthly candles in a row. Only happened in the 2018 bear market. And what came after that?”
The trader implied that ETH’s current setup could mirror that historical bottom. However, analysts remain cautious as macroeconomic uncertainty, declining network activity, and persistent sell pressure continue to weigh on sentiment.
Whales Accumulate as ETH Falls Below $1,800
On-chain data from Lookonchain shows that one whale wallet began accumulating ETH on March 26.
Since then, the entity has purchased 33,441 ETH across multiple transactions, averaging $1,959 per coin.
On April 4, the wallet bought 4,100 ETH for $7.3 million at $1,785 each. Earlier, the same whale acquired 3,195 ETH for $5.9 million on March 29.
Rather than hold the assets, the wallet has supplied all 33,723 ETH to Aave, a decentralized lending protocol, where it now earns 1.97% APY. The current value of the holding stands at $60.98 million.
Lookonchain highlighted this behavior as indicative of long-term conviction, noting that such moves are often associated with “smart money.” Lookonchain posted,
“A whale created a new wallet and spent $20.78M to buy 11,463 $ETH at $1,813 in the past 6 hours.”
ETH Dominance at 8%—A Historical Pivot Zone
Ethereum’s share of the total crypto market has also cratered. Rekt Capital pointed out that ETH dominance dropped from 20% in June 2023 to just 8% today.
Historically, this 8% level has marked a pivot for Ethereum. The last time ETH dominance touched these levels, it reversed upward. Rekt Capital explained,
“Historically, Ethereum Dominance has reversed from this green area to become more market-dominant.”
Still, Ethereum perform continues to underperform Bitcoin. Over the past year, ETH has fallen 46%, while Bitcoin remains more resilient.
Macro factors, including U.S. tariffs and broad risk-asset sell-offs, have contributed to Ethereum’s decline.
Ethereum Fees Hit Lowest Since 2020
On-chain data reveals another bearish trend for Ethereum orice—transaction fees are falling fast.
IntoTheBlock reported that total ETH fees dropped 59.6% in Q1 2025 to $208 million.
The platform attributed this to two main causes: the rise in Ethereum’s gas limit and a continued shift of activity to layer-2 solutions.
The increase in the gas limit—approved by validators in Feb.—allowed more transactions per block. This reduced fee pressure even as activity shifted to cheaper L2 networks.
The reduced fees align with declining price action. ETH lost 49% of its market value in Q1, shedding over $170 billion in capitalization. It was Ethereum’s third-worst quarter since 2016.
Ethereum Awaits Pectra Upgrade as Activity Slides
Ethereum developers have scheduled the Pectra upgrade for mainnet launch on May 7.
The upgrade, which encountered delays due to finality issues on Holesky testnet, has passed tests on the Hoodi network.
Developers view it as a key improvement since Ethereum’s 2022 shift to proof-of-stake.
According to developer notes, the network’s transaction capacity will rise to 36 million gas units. Still, the upgrade comes amid waning on-chain activity.
IntoTheBlock data shows that large transactions involving ETH dropped earlier in the week but surged again on April 4.
Over 4.61k large transactions occurred, compared to 4.41k on April 2. The asset faces weak price action, falling dominance, and historic lows in fees. But whales are buying.
While most retail investors retreat, on-chain data reveals a different trend among large players.
Whether Ethereum price will mirror its 2018 comeback remains uncertain, but the market is watching.
The Pectra upgrade may provide a technical catalyst, yet investor confidence hinges on broader risk sentiment and utility revival.
Source: https://www.thecoinrepublic.com/2025/04/05/whales-buying-65m-eth-ethereum-price-hits-2018-like-bottom/