Key Insights:
- Ethereum whale accumulation grows after a $19.5M purchase, strengthening Ethereum bottom signals despite continued ETF outflows.
- Large investors are buying while Ethereum trades about 56% below its all-time high, suggesting confidence in long-term recovery.
- Tom Lee says the crypto winter may be ending, citing historical price patterns and strong long-term performance data.
Ethereum is drawing renewed attention after an early investor known as thomasg.eth rebuilt his position with a $19.5 million purchase this week.Blockchain data from Arkham Intelligence shows the wallet steadily increased exposure through spot Ether, wrapped ETH, and Aave-deposited tokens across several tracked addresses.
The latest transaction included a $3 million buy on March 20, completing a series of purchases made during a period of weak sentiment.Market observers say the move suggests growing confidence that Ethereum could be approaching a major turning point after months of downward pressure.
Arkham records indicate the wallet once controlled roughly $537 million in digital assets during the 2021 bull market peak.
The fresh purchasing occurs during a period when Ethereum is being traded at approximately 56% of its all-time high of $4,946 in August 2025, as per CoinGecko statistics.
Big players tend to add positions in unpredictable times and this is the trend which traders keep a close eye on whether they can indicate reversal of the trend.The new build up has consequently created a conjecture that the Ethereum is potentially going to enter into a new revival period.
Ethereum price discount attracts large long-term investors
Ethereum’s current valuation has been viewed by some market participants as an opportunity rather than a risk, especially after the prolonged correction.On-chain data indicates that the value of the asset is near to its realized value, which is the mean of the costs that are incurred in all wallets.
The analysts believe that this level has been a powerful area of support in the bottom of the market historically in both the 2022 and the 2025 cycles.Because of that pattern, several institutional investors appear willing to increase exposure despite continued short-term volatility.
The buying activity comes at a time when sentiment around Ethereum remains mixed following several months of reduced trading activity.
However, long-term holders tend to accumulate when prices move far below historical highs, expecting future cycles to restore value.Such behavior has often preceded major rallies, although confirmation usually arrives only after sustained upward momentum appears.For now, the renewed interest has helped stabilize market expectations even while uncertainty continues.
ETF outflows contrast with rising Ethereum buying
Ethereum purchases by large holders occurred while US spot Ether exchange-traded funds recorded three consecutive trading sessions of net outflows.
Data compiled by Farside Investors shows funds lost $55.7 million on March 18, followed by $136.4 million the next day.Another $42 million left the products on March 20, reflecting weaker demand from traditional investment channels during the same period.The mismatch between ETF flows and whales storage has become the major topic of discussion among analysts.
Others traders see the contrast as an indicator that institutional investors might be repositioning and not getting out of Ethereum entirely.
On-chain direct purchases may also be made sometimes in lieu of exchange-traded products when a investor believes the asset will yield better long-term returns by owning it.There have been warnings that ETF outflows are a sign of cautiousness in much wider markets with isolated buying.The inconsistent messages have maintained the short-term forecasts in doubt even as build up is being experienced.
Tom Lee says crypto winter nearing end
BitMine Immersion Technologies chairman Tom Lee added to the debate by arguing that the recent weakness could represent the final stage of a mini crypto winter.Lee cited technical research from market analyst Tom DeMark, whose models compare current price behavior with past recovery patterns.
According to the analysis, Ethereum shows about 93% correlation with the S&P 500 rebounds following the 1987 crash and the 2011 market bottom.Such similarities suggest the asset may have already reached its lowest point earlier this month or could be finishing that process now.
Another point that Lee made was that Ethereum is now trading at a price that is near the actualized price of around $2,241, which is seen around the previous cycle lows.
The argument of bottom forming has actually been supported by the fact that discounts to realized price have frequently come just before significant trend reversals.Because of that signal, BitMine has reportedly accelerated purchases in recent weeks despite ongoing market hesitation.The company believes the broader digital asset market could move into recovery once macro conditions improve.
Long-term performance keeps confidence in Ethereum
Supporters of the asset point to its long-term record as a reason confidence remains strong even after sharp corrections.
Lee noted that over roughly a decade Ethereum has delivered returns of about 49,000%, far exceeding Bitcoin’s gains over the same period.He also compared the performance with Nvidia’s rally, saying the blockchain asset still ranks among the strongest long-term stores of value.Such comparisons are often used to justify continued accumulation during downturns rather than selling into weakness.
Ethereum continues to hit new highs following bouts of pessimism yet after each brutal drawdown, Ethereum has risen and continues to do so.
The fact that history is one of the reasons why big investors are still adding positions when the prices are much lower than the past peaks.It is yet unclear that the present phase is the last part of the down turn, but the recent purchasing behavior is giving hope again.In the meantime, traders are paying closer attention to whether whale and institution accumulation will result in a larger market recovery.
