Major Investors Accumulate Ethereum During Market Downturn
In early November, Ethereum experienced a significant price drop, losing over 12% of its value and briefly touching around $3,000 – the lowest point in nearly four months. But rather than panicking, large investors saw this as an opportunity. Over just three days, major holders collectively purchased 394,682 ETH worth approximately $1.37 billion.
I think what’s interesting here is the timing. The buying happened when ETH was trading around $3,462 on average, which suggests these investors believe the current levels represent good value. The most active buyer was what Lookonchain identified as an “Aave whale” – a single entity that purchased 257,543 ETH valued at $896 million. That’s a massive bet on Ethereum’s future.
Corporate Investors Join the Buying Spree
Bitmine Immersion Technologies, known as Ethereum’s largest corporate holder, was the second-biggest buyer during this period. They acquired 40,719 ETH for about $139.6 million. According to OnChain Lens data, Bitmine executed this purchase in two parts – first buying 20,205 ETH from Coinbase and FalconX, then receiving an additional 20,514 ETH from FalconX.
This isn’t a one-off move for Bitmine. They’ve been consistently accumulating Ethereum during market dips. In late October, the firm made a $250 million purchase, followed quickly by another $113 million investment. It seems they have a clear strategy of buying when prices are down.
Broader Market Trends Support Accumulation
The whale activity aligns with broader network data that shows Ethereum exchange reserves have dropped to their lowest level since 2016. When investors move their ETH off exchanges and into long-term storage, it typically indicates growing confidence in the asset’s future prospects. This reduction in available supply can help support prices by limiting selling pressure.
On-chain metrics from Santiment also suggest Ethereum is signaling a buying opportunity. The Market Value to Realized Value (MVRV) metric shows traders active in the past 30 days are sitting on average losses of 12.8%, while those active over the past year have slipped slightly into negative territory with -0.3% returns.
Santiment noted that when both short-term and long-term MVRV metrics are negative, it historically signals a strong buying opportunity. They described it as a chance to buy “while there is blood in the streets.”
Market Outlook
At the time of writing, ETH was trading at $3,384, showing a modest 1.45% daily recovery. The coin hasn’t yet managed to flip the $3,400 level into solid support, but the combination of heavy whale accumulation, declining exchange reserves, and favorable on-chain metrics suggests growing investor confidence.
Perhaps the most telling aspect is that these large investors are putting real money behind their convictions during a downturn. While the broader cryptocurrency market remains under pressure, this accumulation activity could signal that Ethereum is positioned for recovery once market conditions stabilize. The substantial buying from both individual whales and corporate entities shows that some of the biggest players in crypto see current prices as an attractive entry point.
