Ethereum experienced a significant supply distribution shift this week, with large ETH wallets aggressively increasing their holdings. As these major stakeholders accumulated more, their ownership reached an all-time high. Meanwhile, mid-tier and small wallet holdings hit record lows. This trend occurs as institutional investments and historical patterns suggest Ethereum's potential for further growth, despite market fluctuations.

Santiment's recent analysis reveals that whale wallets holding at least 100,000 ETH now control 57.35% of the total supply. This is equivalent to approximately $333.1 billion.

This increase reflects the growing confidence among Ethereum's largest stakeholders who continue to accumulate despite market volatility. Meanwhile, mid-tier wallets—holding between 100 and 100,000 ETH—have reached their lowest-ever supply ratio at 33.46%.

Addresses with fewer than 100 ETH have dipped to a four-year low of 9.19%. Despite the rise of DeFi and staking wallets, this trend suggests a bullish long-term outlook, according to the on-chain analytic platform.

For Ethereum, a mature nine-year-old asset, sustained accumulation by key stakeholders indicates growing conviction and reduced sell pressure from whales.

This often aligns with positive market sentiment over time. Such whale activity follows Ethereum breaking another record, pushing its year-to-date (YTD) gains to nearly 80%. The cryptocurrency hit $4,106 on Monday before slightly retreating to $4,020. Despite being 22% below its all-time high of $4,878 from November 2021, experts believe significant growth remains possible.

Crypto analyst Ali Martinez's update suggests that Ethereum's price movements historically correlate with shifts in long-term holder sentiment. In previous bull cycles, parabolic price surges occurred when long-term holders entered the "greed" phase. Currently, they are in the early "belief" phase, beginning to feel optimistic about the asset's potential. However, this optimism remains distant from the euphoric peaks that often signal explosive rallies. If past patterns hold, Ethereum's major upward move may still lie ahead as long-term investor sentiment strengthens.

Boosting positive momentum, Ethereum-based investment products have logged seven consecutive weeks of inflows. CoinShares' data shows these products attracted $3.7 billion in this period, with $1 billion arriving just last week. This trend highlights steady institutional interest and confidence.