On-Chain Signals Point to a Bigger Rally Ahead

After enduring months of criticism for lagging behind different crypto belongings, Ethereum is making a powerful return because it reclaims market share.

Regardless of the latest pullback, the altcoin seems to be closing in on $4,000.

Whale Accumulation Hints at A lot Larger Transfer

Beneath its worth motion, massive holders are quietly gearing as much as gas the rally, new information from Santiment exhibits. Since early 2025, wallets holding 10,000 to 100,000 ETH have steadily amassed, indicating institutional gamers are stepping in earlier than mainstream retail hype takes over.

Alongside this, Santiment additionally observed an increase in ETH-related social discussions, which means that the present surge is rooted in on-chain fundamentals and strategic positioning somewhat than short-term retail FOMO.

The crypto analytic agency additionally discovered that, in contrast to earlier cycles the place ETH largely adopted Bitcoin’s trajectory, Ethereum is exhibiting its personal unbiased momentum this time. Its market worth ratio relative to Bitcoin has surged by 64% since Might 8, 2025, which displays how investor confidence is shifting again to the altcoin’s fundamentals.

Curiously, it was the deep bearish sentiment in the beginning of 2025 that will have set the stage for this rebound.

ETH Sentiment Flips From Worry to Confidence

When Ethereum touched $1,450 on April 8 this 12 months, sentiment throughout crypto boards and social platforms was bleak. On X, Reddit, and Telegram, bullish-to-bearish remark ratios sat round 3:5, which indicated worry and doubt at their peak.

Traditionally, such worry typically precedes alternative, and this cycle has been no exception. By late July, as Ethereum climbed, sentiment flipped decisively to a 2:1 bullish-to-bearish ratio, which pointed to a return of dealer confidence.

Santiment notes that this transformation is a stark distinction to the panic seen in early spring, nevertheless it additionally hints at pockets of FOMO starting to floor.

Nonetheless, the present sentiment is cooler than the “frothy” 3.5:1 bullish ratio recorded in mid-June, which means that optimism has moderated whereas sustaining constructive momentum. This moderation may function a more healthy basis for the rally to renew if bullish commentary continues to chill.

Including to the optimism are supportive headlines. Fundstrat’s Tom Lee just lately predicted that the crypto asset may attain $10,000-$15,000, owing to ETF inflows, institutional demand, and AI infrastructure tailwinds as catalysts.