After enduring months of criticism for lagging behind other crypto assets, Ethereum is making a strong return as it reclaims market share.

Despite the recent pullback, the altcoin appears to be closing in on $4,000.

Whale Accumulation Hints at Much Bigger Move

Underneath its price action, large holders are quietly gearing up to fuel the rally, new data from Santiment shows. Since early 2025, wallets holding 10,000 to 100,000 ETH have steadily accumulated, indicating institutional players are stepping in before mainstream retail hype takes over.

Alongside this, Santiment also observed a rise in ETH-related social discussions, which suggests that the current surge is rooted in on-chain fundamentals and strategic positioning rather than short-term retail FOMO.

The crypto analytic firm also found that, unlike previous cycles where ETH largely followed Bitcoin’s trajectory, Ethereum is showing its own independent momentum this time. Its market value ratio relative to Bitcoin has surged by 64 since May 8, 2025, which reflects how investor confidence is shifting back to the altcoin’s fundamentals.

Interestingly, it was the deep bearish sentiment at the start of 2025 that may have set the stage for this rebound.

ETH Sentiment Flips From Fear to Confidence

When Ethereum touched $1,450 on April 8 this year, sentiment across crypto forums and social platforms was bleak. On X, Reddit, and Telegram, bullish-to-bearish comment ratios sat around 3:5, which indicated fear and doubt at their peak.

Historically, such fear often precedes opportunity, and this cycle has been no exception. By late July, as Ethereum climbed, sentiment flipped decisively to a 2:1 bullish-to-bearish ratio, which pointed to a return of trader confidence.

Santiment notes that this transformation is a stark contrast to the panic seen in early spring, but it also hints at pockets of FOMO beginning to surface.

However, the current sentiment is cooler than the “frothy” 3.5:1 bullish ratio recorded in mid-June, which suggests that optimism has moderated while maintaining constructive momentum. This moderation could serve as a healthier foundation for the rally to resume if bullish commentary continues to cool.

Adding to the optimism are supportive headlines. Fundstrat’s Tom Lee recently predicted that the crypto asset could reach $10,000-$15,000, owing to ETF inflows, institutional demand, and AI infrastructure tailwinds as catalysts.