Ethereum Under Pressure: The Strategic Move of Major Accumulators and What It Means for the Market

The Ethereum Accumulation Game: An Institutional Strategy in Focus

The massive Ethereum accumulation strategy has recently taken on epic proportions. One of the leading companies in the cryptocurrency sector has significantly ramped up its purchases, currently holding 3.4 million ETH, equivalent to 2.8% of the circulating supply. This aggressive approach is part of a bold plan known as ‘The 5% Alchemy’, aiming to control 5% of Ethereum’s total circulating supply.

But what does this scenario really mean for the ecosystem, investors, and price dynamics? The implications go far beyond superficial numbers.

Strategy Details: When a Major Player Bets Big

‘The 5% Alchemy’ represents more than mere speculation. It is a calculated institutional position that positions the accumulator as one of the main players in the Ethereum ecosystem, with substantial influence over its future development.

Accelerated Purchase Pace

The numbers speak for themselves:

• October 2025: acquisition of over 744,500 ETH in a single campaign, including an individual transaction of 82,353 ETH
• Total position: 3.4 million ETH with plans for continued expansion
• Clear intent: the accumulator signals extreme confidence in Ethereum’s appreciation potential

However, this aggressiveness also raises legitimate questions about exposure to volatility risk and possible regulatory scrutiny.

The Real Market Impact

Recent Price Pressure

The Ethereum market is under significant pressure. The price has fallen below $3,700, forming a concerning technical pattern known as ‘death cross’ ( when the 50-day moving average drops below the 200-day). Additionally, a $120 million exploit in a major DeFi protocol amplified turbulence, triggering cascading sales.

Currently, ETH is trading at $2.86K, reflecting a 2.16% decrease in the last 24 hours, with a market capitalization of $345.06 billion based on a circulation of 120,695,059 ETH.

Stock Market Reaction

The market responded mixed to the strategy. After the announcement of the latest large-volume purchase, the accumulator’s shares fell 7.48%, suggesting not all investors view the approach favorably amid volatility.

Technical Reading: What Do Indicators Say?

RSI and Recovery Possibilities

The Relative Strength Index (RSI) of Ethereum indicates oversold conditions, historically associated with short-term recovery opportunities. This may attract tactical traders, though caution is prudent given the broader macroeconomic context.

The Importance of Technical Support

The formation of the ‘death cross’ is technically bearish, suggesting ongoing pressure. However, long-term oriented investors often interpret these patterns as mere temporary setbacks within a broader appreciation trend.

Fundamentals Continue to Support Optimism

Stablecoin Volume: An Underestimated Indicator

Despite short-term turbulence, the volume of stablecoins on the Ethereum network reached a record high of $2.82 trillion in October 2025. This data underscores Ethereum’s critical role as a settlement infrastructure for decentralized finance (DeFi) and the global stablecoin economy.

Concentration and Decentralization Risk

The accumulation strategy also raises important questions about decentralization. With a single entity holding a significant stake, data shows that the Top 10 addresses control 69.49% of the total circulation, raising concerns about excessive concentration.

Who Is Betting on This: Institutional Support

The strategy is backed by some of the biggest names in crypto venture capital:

• ARK Invest
• Founders Fund
• Pantera Capital
• Galaxy Digital

This collective support reinforces the narrative of long-term institutional confidence in Ethereum.

Diversification Beyond Ethereum

The portfolio is not 100% concentrated. It also includes:

• 192 Bitcoin
• $389 million in cash positions
• $62 million in strategic holdings described as a “moonshot” investment

This portfolio approach reduces idiosyncratic risk from Ethereum’s volatility.

ETFs and the Institutional Signal

Ethereum-based ETFs continue to see significant inflows. The Grayscale Ethereum Mini Trust recently recorded $56.05 million in net positive flows, indicating that conservative institutions are also repositioning positively in the asset.

Forecasts: Where Is Sentiment Heading?

Despite current pressure, the long-term outlook remains fundamentally optimistic among major players. Prominent analysts suggest potential significant appreciation by year-end, citing fundamentals such as:

• Increased revenues from decentralized applications
• Exponential growth in stablecoin activity
• Accelerated institutional adoption
• Technological innovations in scalability

Conclusion: The Long-Term Ethereum Game

The aggressive Ethereum accumulation strategy by major players is a firm bet on the ecosystem’s future. While it demonstrates absolute confidence in long-term potential, it also sparks legitimate discussions about market impact, wealth centralization, and regulatory considerations.

As Ethereum continues to evolve, supported by solid network utilization fundamentals and growing institutional adoption, actions by large accumulators like these will significantly influence its future trajectory. For investors, developers, and enthusiasts, monitoring these dynamics will be essential for making informed decisions in the ever-changing cryptocurrency market.