Ethereum Whales Show Strong Conviction, Accumulating Billions Amidst Price Dip
Nov 7
2 min read
Ethereum whales have been actively accumulating Ether (ETH) in large volumes, purchasing approximately $1.37 billion over a three-day period despite a recent price dip. This significant buying activity from major holders suggests a strong belief in a potential rebound for the second-largest cryptocurrency, even as the broader market faces pressure.
Key Takeaways
Ethereum whales collectively purchased nearly 395,000 ETH, valued at $1.37 billion, in just three days.
Major entities, including an "Aave whale" and Bitmine Immersion Technologies, were significant buyers.
Declining Ethereum exchange reserves and positive on-chain metrics indicate growing investor confidence.
Whale Accumulation Amidst Market Downturn
In early November, Ethereum experienced a notable price drop, losing over 12% of its value and briefly touching lows around $3,000. However, instead of offloading, large holders, often referred to as "whales," seized this opportunity to increase their positions. Data from analytics firm Lookonchain revealed that eight major entities bought a combined 394,682 ETH, averaging a purchase price of $3,462 per ETH.
The "Aave whale" emerged as the largest buyer, acquiring 257,543 ETH for approximately $896 million. Following closely was Bitmine Immersion Technologies, ETH's largest corporate holder, which purchased 40,719 ETH for about $139.6 million. This aligns with Bitmine's ongoing strategy of accumulating ETH during market dips, having previously invested substantial amounts in late October.
Signs of Growing Confidence
Beyond direct whale accumulation, broader network data supports the narrative of increasing investor conviction. Ethereum's exchange reserves have fallen to their lowest levels since 2016, suggesting that investors are moving their ETH off trading platforms into long-term storage. This trend typically reduces the immediate selling pressure and can bolster potential price appreciation.
On-chain analytics from Santiment further indicate a strong buying opportunity. The Market Value to Realized Value (MVRV) metric shows that both short-term and long-term traders are currently experiencing average losses. Historically, when these metrics are in negative territory, it signals a low-risk buying period with significant potential for future gains.
Expert Outlook and Future Potential
Analysts are closely monitoring these accumulation trends, as such buying activity often precedes market shifts. Some experts predict a sharp rebound for ETH, with potential targets reaching $4,800 or even $5,000 by the end of the year, driven by network upgrades and increasing institutional adoption. The current consolidation phase is viewed by some as a healthy market correction that flushes out leverage and sets the stage for long-term growth and renewed institutional interest.
Sources
Crypto Whale Opens $55M Long Positions on Bitcoin and Ethereum, CoinMarketCap.
Tom Lee Urges People to Buy the Dip as His $11.53 Billion Ethereum Treasury Faces Pressure — TradingView News, TradingView.
Ethereum “Dead”? One Firm Just Spent $137M in 24 Hours, Coinpaper.
Whales Scoop Up 395k ETH Over 3 Days, 99Bitcoins.
Ethereum Whales Buy $1.37 Billion in ETH Amid Price Slump, BeInCrypto.