Ethereum has experienced a sharp price correction, declining nearly 10% over the past 24 hours to trade below $3,200, extending a week-long selloff that has pressured the broader cryptocurrency market. Despite the downturn, major holders accumulated 460,000 ETH worth approximately $1.6 billion in recent days, signaling strong conviction among institutional investors even as market panic intensified.
The divergence between whale buying and long-term holder selling has created a dynamic that may define Ethereum's price trajectory through the remainder of November. While seasoned investors who held ETH for years are taking profits, deep-pocketed whales are aggressively accumulating during the price dip, potentially setting the stage for a recovery once selling pressure subsides.
BitMine Immersion Technologies, the Ethereum-focused digital asset treasury firm led by Wall Street strategist Thomas Lee, has emerged as one of the most active buyers during the correction. The company added 110,288 ETH worth nearly $400 million in the past week alone, bringing its total holdings to over 3.5 million tokens.
The firm now controls approximately 2.9% of Ethereum's total supply, valued at roughly $13.2 billion at current prices. BitMine's chairman Lee, who also heads research firm Fundstrat, characterized the price decline as a buying opportunity with attractive risk-reward characteristics.
On-chain analytics platform Lookonchain identified a new wallet likely linked to BitMine receiving 9,176 ETH from Galaxy Digital's OTC desk, worth approximately $29.14 million. The transaction represents part of a broader pattern of institutional accumulation occurring through over-the-counter channels to minimize market impact.
BitMine's aggressive accumulation strategy stands in contrast to many digital asset treasury firms, which have struggled to raise capital as their stock prices fell below the net asset value of their underlying crypto holdings. The company's commitment to expanding its Ethereum position despite near-term volatility reflects conviction in the network's long-term value proposition centered on staking yields and expanding tokenization infrastructure.
Whale Cohorts Drive Demand Surge
Large holders controlling between 1,000 and 100,000 ETH accumulated 1.64 million tokens worth approximately $6.4 billion throughout October, according to on-chain analytics from Santiment. The steady buying persisted despite a 7% monthly price decline, demonstrating whale insensitivity to short-term market movements.
More recent data from BeInCrypto shows that addresses holding between 1 million and 10 million ETH accumulated nearly 460,000 ETH over a four-day period in mid-November. This haul, valued at more than $1.6 billion, signals strong conviction among the largest holders that Ethereum's current price levels represent an attractive entry point.
CoinDesk reported that whales purchased 394,682 ETH worth $1.37 billion between $3,247 and $3,515 during the recent breakdown below key support levels. The accumulation occurred even as volume spiked 145% above average, suggesting institutional-scale flows were absorbing retail selling pressure.
The whale accumulation pattern has historical precedent as a potential market bottom indicator. CryptoQuant analyst ShayanMarkets noted that elevated spot volumes coupled with whale buying often marks "the start of trend reversals or late-stage compression phases before major upswings."
High-Profile Investors Take Leveraged Positions
Individual high-net-worth investors have also been adding to Ethereum positions despite the price decline. Taiwanese music celebrity and digital asset investor Jeffrey Huang, known on-chain as "Machi Big Brother," increased his exposure by purchasing 7,400.7 ETH worth $23.55 million on decentralized derivatives platform Hyperliquid.
The leveraged position carries a liquidation price of $3,040.60, suggesting Huang expects Ethereum to stabilize above this level. His brother, known as "Machi Small Brother," deposited 5,000 ETH valued at $15.9 million along with additional margin to avoid liquidation, with a liquidation price of $2,794.71.
Another prominent whale tracked as "66kETHBorrow" added 16,937 ETH worth $53.91 million during the recent decline, raising total purchases to 422,175 ETH valued at approximately $1.34 billion. These large accumulation addresses demonstrate that sophisticated market participants view current prices as undervalued relative to Ethereum's fundamental prospects.
The willingness of investors to deploy leverage during a correction typically signals strong conviction, though it also introduces additional risk if prices continue declining. The concentration of leveraged positions between $2,800 and $3,050 establishes a price floor where mass liquidations could trigger additional volatility.
Support Zone Emerges at $3,150 Level
On-chain analyst Ali Martinez reported that 2.53 million ETH were purchased around $3,150, effectively establishing this price point as a strong support zone. The heavy buying at this level demonstrates that demand increases substantially as Ethereum approaches the lower end of its recent trading range.
The $3,150-$3,200 zone now represents a critical technical level where buyers have repeatedly stepped in during the current correction. A sustained breakdown below this support could expose Ethereum to further downside toward the $3,000 psychological threshold, while a bounce would reinforce the accumulation thesis.
Technical analysts note that Ethereum's price action shows signs of hidden bullish divergence on longer timeframes, where price makes higher lows while momentum indicators make lower lows. This pattern suggests selling pressure is weakening despite continued price decline, potentially setting up a reversal once buyer conviction increases.
Long-Term Holders Accelerate Distribution
While whales accumulate, Ethereum holders who have maintained positions for 3-10 years have sharply increased selling activity. According to Glassnode data released November 14, these seasoned investors are distributing more than 45,000 ETH per day on average based on the 90-day simple moving average.
This selling rate marks the highest spending level from long-term holders since February 2021, during the previous bull market peak. The acceleration began in late August as Ethereum retreated from its cycle highs, suggesting this cohort is taking profits after extended holding periods.
The daily selling of 45,000 ETH represents approximately $140-150 million in ongoing selling pressure at current price levels. While substantial, this distribution is being absorbed by whale accumulation and appears to be profit-taking rather than panic selling, as these holders remain significantly profitable on positions established years ago.
The divergence between long-term holder selling and whale accumulation reflects different investment strategies and time horizons. Early buyers are crystallizing gains after multi-year holding periods, while newer institutional participants are establishing positions based on current valuations and future growth expectations.
Holder Accumulation Metrics Show Mixed Signals
Glassnode's Holder Accumulation Ratio has declined from 31.27% to 30.45% since late October, indicating that more addresses are reducing balances than increasing them. The metric measures the ratio of addresses accumulating to those distributing, with a declining reading signaling net selling pressure.
However, this retail caution contrasts sharply with whale behavior. While smaller holders trim exposure and wait for clearer market signals, large holders are positioning for an eventual recovery. This bifurcation suggests that sophisticated investors see value that retail participants are missing or are simply better positioned to weather near-term volatility.
The Age Consumed metric from Santiment shows a notable slowdown in long-term holder coin movement, despite the elevated spending levels reported by Glassnode. Smaller Age Consumed spikes indicate fewer long-standing investors are liquidating large portions of their holdings, which historically reduces downside pressure.
Exchange Reserve Dynamics Support Recovery Thesis
Despite the substantial whale purchases and long-term holder selling, Ethereum reserves on exchanges remain relatively low compared to previous market cycles. The low exchange balances suggest that even with increased selling, most ETH is moving to self-custody or being deployed in decentralized finance protocols rather than accumulating on exchanges for potential sale.
This dynamic supports the accumulation narrative, as coins leaving exchanges typically signal holders expect higher prices. The combination of declining exchange reserves and active whale buying creates supply constraints that could amplify any demand surge when market sentiment improves.
Stablecoin inflows to exchanges have also declined from peak levels, indicating reduced buying power from retail participants. This suggests the current whale accumulation is occurring largely through OTC channels and does not yet reflect broader market participation that could drive sustained price recovery.
Network Fundamentals Remain Strong
Beneath the price volatility, Ethereum's network metrics demonstrate continued health. Daily active addresses remain elevated compared to historical averages, while the network recently achieved throughput of 24,192 transactions per second, reflecting infrastructure resilience.
The Fusaka upgrade scheduled for December 2025 introduces Peer Data Availability Sampling (PeerDAS), which is expected to reduce Layer-2 transaction fees by up to 95%. This technical improvement could drive increased adoption as DeFi and rollup applications benefit from dramatically lower costs.
Institutional interest in Ethereum-based tokenization continues expanding, with major financial institutions piloting programs for tokenized bonds and securities on Ethereum networks. The growing real-world asset sector provides fundamental demand drivers beyond speculative trading.
Market Context and Recovery Prospects
Ethereum's correction coincides with broader cryptocurrency market weakness, as Bitcoin also declined from October highs. The correlation between major crypto assets means Ethereum's recovery prospects are partly tied to Bitcoin establishing a stable price floor.
However, Ethereum's unique value proposition through staking yields and smart contract utility provides differentiated drivers. The current staking rate offers approximately 3-4% annual yields, making Ethereum attractive to investors seeking income-generating assets in an environment where traditional yields remain modest.
Historical patterns show November averaging 6.9% gains for Ethereum over the past eight years, with 2024's 47% rally representing the strongest November performance. While past performance doesn't guarantee future results, seasonal patterns suggest the current correction could give way to year-end strength.
Final thoughts
Market participants are closely watching whether Ethereum can hold the $3,150-$3,200 support zone that has attracted substantial buying. A sustained break below this range could test the $3,000 level, while reclaiming $3,400-$3,500 would signal the correction may be complete.
Technical resistance appears around $3,600-$3,650, with a decisive breakout above $4,000 needed to fully reverse the bearish structure established since the October highs. Whale accumulation provides a foundation for recovery, but broader market participation will likely be necessary to drive sustained upward momentum.
The divergence between whale buying and long-term holder selling creates an unusual market structure where patient capital is building positions while early investors harvest gains. This rotation from older hands to newer institutional holders could establish a higher price floor as distribution from multi-year holders eventually exhausts.
As Ethereum navigates this transitional period, the aggressive accumulation by well-capitalized whales and treasury companies suggests sophisticated market participants expect higher prices ahead, even as near-term volatility persists.