Key Takeaways
Large Ethereum holders bought 140,000 ETH, valued at approximately $322 million, in a 96-hour period as a comprehensive U.S. crypto-asset bill cleared a key hurdle in the Senate. The accumulation occurred between May 1 and May 3, even as the price of ETH remained relatively stable around $2,305.
A breakthrough compromise on stablecoin yield provisions has renewed momentum for the CLARITY Act, a bill aimed at establishing a regulatory framework for digital assets. "The impasse was unnecessary from the start," Paul Grewal, Coinbase's Chief Legal Officer, said, expressing satisfaction with the outcome that allows the bill to move forward.
The whale buying spree, tracked by Ali Charts, saw total holdings by major investors increase from 13.78 million to 13.98 million ETH. Despite the $322 million injection of capital, ETH's price saw only a modest 0.1% gain in the 24 hours following the activity. The legislative progress in Washington is seen as a more significant long-term catalyst, with a Senate Banking Committee markup for the bill potentially scheduled for the week of May 11.
The dual developments highlight a growing confidence from large investors and a potential easing of regulatory uncertainty that has long hung over the U.S. crypto market. The passage of the CLARITY Act, which prediction market Polymarket now gives a 55% chance of becoming law in 2026, could provide the legal framework necessary for further institutional investment in assets like Ethereum.
The significant accumulation of ETH by whale addresses without a corresponding price surge suggests a deliberate and sustained buying campaign. The 140,000 ETH was acquired over four days, indicating patient accumulation rather than a single large market order. This pattern can be interpreted as a bullish sign, reflecting conviction from large holders that the current price levels are a valuable entry point before potential future appreciation. Market analyst Daan Crypto Trades noted that ETH is consolidating, with critical support at $2,200. A drop below this could see prices revisit the $1,900 level, while a break above the $2,400 resistance could open a path toward $2,600 and $2,800.
The main obstacle for the CLARITY Act was a dispute over whether stablecoin holders could earn yield, a practice opposed by traditional banking institutions. The new compromise, brokered by Senator Thom Tillis, allows for activity-based rewards like those from trading or staking but prohibits passive rewards that function like interest on a bank deposit. This resolution has unblocked the bill, which now moves toward a committee markup. While challenges remain in reconciling Senate and House versions, the agreement marks the most significant step toward comprehensive U.S. crypto regulation in years, potentially providing much-needed clarity for exchanges, investors, and developers in the Ethereum ecosystem.
This article is for informational purposes only and does not constitute investment advice.
