Ethereum Whales Start Buying Back: 218K ETH Added In A Week After October Dump

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Ethereum’s largest non-exchange holders are tiptoeing back into accumulation. On-chain analytics platform Santiment reported that wallets holding between 100 and 10,000 ETH, also known as whales and sharks, have begun to rebuild positions after unloading roughly 1.36 million ETH between October 5 and 16. 

Notably, the Ethereum collective holdings chart shows that nearly one-sixth of those coins have already been clawed back, as some confidence starts to returnto the second-largest crypto asset. Related Reading ‘The Best Is Yet To Come’: Ripple President Sees Bright Path Ahead For XRP 1 day ago Whales Reverse Course After Early-October Capitulation

The first half of October was highlighted by one of Ethereum’s most pronounced periods of capitulation this year. Macroeconomic fears due to US tariffs saw the Bitcoin price undergo a flash crashthat dragged many altcoins to the downside. During this move, Ethereum’s price also fell very quickly, dropping from highs around $4,740 on October 7 to as low as $3,680 on October 11. 

Interestingly, on-chain data showsthat the selling pressure from large holders amplified this move, as the chart from Santiment shows a steep decline in their cumulative holdings from about 24.5 million ETH to roughly 22.6 million ETH. This 1.9 million ETH drop reflected clear risk-off behavior among whales and sharks, who had been net buyers since August.

However, once selling momentum began to fade, accumulation started to return. Institutional inflows started to return into Spot Ethereum ETFs, and whale/shark trades started accumulating Ethereum. Since October 16, the same cohort that contributed to the liquidation has begun adding back to their positions. Santiment noted that these holders are finally showing some signs of confidence, demonstrating an incoming extended recovery phase following the shakeout. ETHUSD now trading at $3,953. Chart: TradingView 218,470 ETH Added In Last 7 Days

According to Santiment’s data, the collective holdings of addresses with 100 to 10,000 ETH have rebounded to approximately 23.05 million ETH after bottoming out in mid-October. A highlighted annotation on the chart shows that 218,470 ETH were accumulated in just the past week, signaling a tangible shift in on-chain behavior. 

Ethereum collective holdings of wallets holding 100-10,000 ETH. Source: Santiment

This increase represents roughly one-sixth of the coins previously dumped, a sign that major investors are gradually re-entering the market after what appeared to be an exhaustion phase. Similar accumulation trends have often preceded a broader recovery in Ethereum’s price, especially when accompanied by stabilization in the ETH/BTC trading pair.

As it stands, the Ethereum price appears to be building a firmer base for the next phase of its recovery heading into November.When whale wallets accumulate, it reduces the circulating supply available on exchanges and reduces selling pressure. Related Reading XRP Sparks Bullish Frenzy As Top Software Dev Says It Beats ETF Hype 1 day ago

At the time of writing, Ethereum is trading at $3,940 and is on track to break and closeabove $4,000 again. Both Ethereum and Bitcoin have risen a bit in recent days after inflation report showedUS inflation cooling to 3% in September, below the 3.1% forecasted by economists. 

Featured image from Unsplash, chart from TradingView