tl;dr
Ethereum is making a strong comeback, nearing $4,000 after criticism for lagging behind other cryptocurrencies. Large holders are accumulating ETH, signaling potential for a larger rally. Institutional investors have increased positions since early 2025, coinciding with rising social discussions and...
After months of criticism for falling behind other cryptocurrencies, Ethereum is staging a powerful comeback as it recaptures market share. Despite a recent pullback, the altcoin is approaching the $4,000 mark, signaling renewed strength in its price action. Beneath the surface, large holders—often called whales—are quietly accumulating, a move that data from Santiment suggests could fuel a much larger rally ahead.
Since early 2025, wallets holding between 10,000 and 100,000 ETH have steadily increased their positions, indicating that institutional investors are moving in well before mainstream retail investors catch on. This accumulation coincides with a rise in Ethereum-related social discussions, pointing toward a surge grounded in solid on-chain fundamentals and strategic investor positioning, rather than fleeting retail-driven FOMO.
Interestingly, Ethereum is carving out its own momentum distinct from Bitcoin’s path. The market value ratio of ETH relative to Bitcoin has jumped by 64% since May 8, 2025, demonstrating a shifting confidence from investors back to Ethereum’s intrinsic strengths. This independent rise contrasts with previous cycles when Ethereum merely followed Bitcoin’s lead.
The groundwork for this resurgence may have been laid during a period of deep bearish sentiment earlier in 2025. When Ethereum hit a low of $1,450 on April 8, crypto sentiment was deeply pessimistic, with a bullish-to-bearish comment ratio hovering around 3:5 on platforms like X, Reddit, and Telegram. Historically, such negativity often signals upcoming opportunity. By late July, as Ethereum’s price recovered, bullish sentiment surged to a 2:1 ratio, reflecting returning trader confidence.
This shift from fear to optimism marks a dramatic turnaround, though pockets of FOMO are starting to emerge. Yet, the current bullish enthusiasm remains tempered compared to the “frothy” 3.5:1 ratio observed in mid-June, indicating a more sustainable and measured optimism. Such moderation may provide a sturdier base for Ethereum’s rally if positive sentiment persists.
Further fueling this bullish outlook are recent optimistic projections. Tom Lee of Fundstrat suggested that Ethereum could soar to $10,000-$15,000, driven by factors such as ETF inflows, growing institutional demand, and the expanding role of AI infrastructure. These catalysts add exciting dimensions to Ethereum’s already dynamic comeback, painting a compelling picture for investors keeping a close eye on this leading altcoin.