Ethereum’s [ETH] much-anticipated Pectra Upgrade appears to be turning market sentiment, with whale activity signaling a risk-on pivot. Despite ETH’s current price hovering under $2,000, the number of whale addresses (1k–10k ETH) has grown from 4,643 in December to 4,953 in May. These wallets are sitting on unrealized losses yet continue to accumulate—pointing to a strong belief in Ethereum’s long-term upside.
Data from CryptoQuant reveals that from March 10 to May 3, whale-held ETH surged from 15.5 million to over 19 million—a 22.5% increase. This accumulation during price weakness suggests that major holders are betting on the Pectra upgrade to be the breakout catalyst.
ETH Holders Refuse to Sell: Accumulating Addresses Lower Their Cost Basis
— CryptoQuant.com (@cryptoquant_com) May 5, 2025
“On March 10 they held 15.5356M ETH, and by May 3 this rose to 19.0378M ETH, a 22.54% increase. Behavior reflects structural conviction & clear expectations of short-term appreciation.” – By @oro_crypto pic.twitter.com/yx12tC7N0O
Ethereum Dominates RWA Sector but Price Lags
Ethereum is also leading in real-world asset (RWA) adoption, with $6.5 billion in total value locked—far ahead of ZKsync Era’s $2.2 billion. While Ethereum’s fundamentals remain solid, its price action doesn’t reflect the on-chain strength. ETH remains stuck below the critical $2,000 mark, leaving investors wondering when the fundamentals will catch up to price.
If Pectra lives up to its billing, the upgrade could ignite fresh momentum. Until then, ETH seems poised in a holding pattern—charged, but waiting for a spark.
Also Read: Ethereum ETF Inflows Modest Amid Bitcoin ETF’s $422M Surge
Countdown to Pectra: Is the Market Overheating?
Despite optimism, signs of caution persist. Exchange reserves have fluctuated—rising from 19.10 million to 19.8 million ETH in April—indicating some traders are preparing to sell into strength. At the same time, the Estimated Leverage Ratio has climbed steadily since November, showing increased risk-taking among futures traders.
This divergence suggests the market is hedging its bets. While Pectra could mark the beginning of a bullish breakout, there’s also a risk of a short-lived hype cycle, especially if structural demand doesn’t keep pace. Until ETH breaks $2,000 convincingly with declining reserves, the rally remains on shaky ground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
