The largest non-exchange holders of Ethereum are tiptoeing back into the accumulation. On-chain analytics platform Santiment reported that wallets holding between 100 and 10,000 ETH, also known as whales and sharks, have started rebuilding their positions after offloading around 1.36 million ETH between October 5 and 16.
Strikingly, the Ethereum collective holdings chart shows that almost a sixth of these coins have already been recovered, as some confidence is starting to return to the second largest crypto asset.
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Whales change course after capitulating in early October
The first half of October was marked by one of Ethereum’s most pronounced capitulation periods this year. Macroeconomic fears due to US tariffs saw the Bitcoin price rise suffer a flash crash that has dragged down many altcoins. During this move, the price of Ethereum rises also fell very quicklyand fell from highs around $4,740 on October 7 to $3,680 on October 11.
Interestingly enough, show data about the chain that selling pressure from large holders amplified this move, as Santiment’s chart shows a steep drop in their cumulative holdings from around 24.5 million ETH to around 22.6 million ETH. This drop of 1.9 million ETH clearly reflects risk-taking behavior among whales and sharks, who have been net buyers since August.
However, as the selling momentum began to fade, accumulation began to return. Institutional inflows began to return to Spot Ethereum ETFs and whale/shark trades started collecting Ethereum. Since October 16, the same cohort that contributed to the liquidation has started adding to their positions again. Santiment noted that these holders are finally showing some signs of confidence, demonstrating an upcoming extended recovery phase after the shakeout.
218,470 ETH added in the last 7 days
According to Santiment data, collective ownership of addresses holding 100 to 10,000 ETH has recovered to around 23.05 million ETH, after bottoming out in mid-October. A highlighted annotation on the chart shows that 218,470 ETH has been accumulated in the past week, indicating a tangible shift in on-chain behavior.
Ethereum collective holdings of wallets with 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 attrition phase. Similar accumulation trends have often preceded a broader recovery in Ethereum’s price, especially when accompanied by stabilization of the ETH/BTC trading pair.
As it stands now, Ethereum price appears to be building a firmer foundation for its next phase recovery towards November. When whale portfolios accumulate, it reduces the circulating supply available on exchanges and reduces selling pressure.
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At the time of writing, Ethereum is trading at $3,940 is on its way to breaking and closing back above $4,000. Both Ethereum and Bitcoin have risen somewhat in recent days after the inflation report showed US inflation cools to 3% in September, below the 3.1% forecast by economists.
Featured image from Unsplash, chart from TradingView