Major Investors Accumulate Ethereum During Market Dip
In early November, Ethereum experienced a significant price drop, losing over 12% of its value and briefly touching around $3,000—its lowest point in nearly four months. But rather than panicking, major investors saw this as an opportunity. Over just three days, eight large entities collectively purchased 394,682 ETH, totaling approximately $1.37 billion.
The average buying price was around $3,462 per ETH. An “Aave whale” emerged as the most aggressive buyer, acquiring 257,543 ETH worth about $896 million. Bitmine Immersion Technologies, already known as Ethereum’s largest corporate holder, followed with a purchase of 40,719 ETH valued at $139.6 million.
This buying pattern isn’t new for Bitmine. The company has been consistently accumulating Ethereum during market downturns. In late October, they made a $250 million purchase, followed by another $113 million investment shortly after.
Exchange Reserves Hit Historic Lows
While whales were buying, broader network data revealed an interesting trend. CryptoQuant data shows Ethereum exchange reserves have dropped to their lowest levels since 2016. When exchange reserves decrease, it typically means investors are moving their holdings off trading platforms and into long-term storage.
This behavior suggests growing confidence in Ethereum’s future prospects. Lower exchange reserves reduce the immediate supply available for selling, which can help support price stability and potentially create upward momentum when market conditions improve.
On-Chain Metrics Signal Buying Opportunity
Santiment’s analysis adds another layer to this story. Their Market Value to Realized Value (MVRV) metric indicates Ethereum might be presenting a strong buying opportunity. Traders active in the past 30 days are sitting on average losses of 12.8%, while those active over the past year have slipped into slightly negative territory with -0.3% returns.
Historically, when both short-term and long-term MVRV metrics sit in negative ranges, it often signals a low-risk buying opportunity. This pattern has preceded recoveries in the past.
What’s interesting is that despite the price drop, the combination of whale accumulation, declining exchange reserves, and favorable on-chain metrics suggests underlying strength. It appears that experienced investors are using this downturn to build positions, perhaps anticipating future recovery.
Of course, nothing is guaranteed in cryptocurrency markets. But the coordinated buying by major players during a downturn does suggest they see value at current levels. Whether this translates into sustained price recovery will depend on broader market conditions and whether these accumulation patterns continue.
