In early November, Ethereum (ETH) lost over 12% of its value. However, major holders are buying the dip, investing around $1.37 billion in just three days to accumulate the second-largest cryptocurrency.
This aggressive buying highlights strong conviction among large investors, even as the broader cryptocurrency market remains under pressure.
Ethereum Whales Buy The Dip
BeInCrypto reported that earlier this week, Ethereum experienced its steepest daily drop in months. The altcoin slipped to a low of around $3,000 on Tuesday, marking a nearly 4-month low.
According to BeInCrypto Markets data, ETH traded at $3,384 at the time of writing, reflecting a modest 1.45% daily recovery. While the coin has yet to flip the $3,400 level into support, holders appear to view the downturn as a buying opportunity rather than a reason for concern.
Ethereum (ETH) Price Performance. Source: BeInCrypto Markets
On-chain analytics firm Lookonchain reported substantial accumulation by whales during the downturn. Data showed that eight major entities collectively purchased 394,682 ETH, valued at approximately $1.37 billion over the past three days.
The average buying price was $3,462. Lookonchain identified an “Aave whale” as the biggest buyer. The entity purchased 257,543 ETH valued at $896 million.
The second-biggest buyer was ETH’s largest corporate holder, Bitmine Immersion Technologies. The firm acquired 40,719 ETH for approximately $139.6 million.
OnChain Lens data showed that Bitmine first purchased 20,205 ETH from Coinbase and FalconX. It later received an additional 20,514 ETH from FalconX.
This latest move aligns with Bitmine’s ongoing strategy of accumulating Ethereum during market dips. In late October, the firm made a major purchase worth $250 million, followed shortly by another $113 million investment in ETH.
At the same time, broader network data reflects similar investor behavior. CryptoQuant data revealed that Ethereum exchange reserves dropped to their lowest level since 2016.
Typically, lower exchange reserves suggest that investors are moving their Ethereum holdings off trading platforms and into long-term storage, reflecting growing confidence in the asset’s future. This trend reduces the immediate supply available for sale, which can lessen selling pressure and support potential upward price momentum.
Declining Supply of Ethereum on Exchanges. Source: CryptoQuant
On-Chain Metrics Flash Buy Signal For ETH
On-chain analytics from Santiment support this trend. Data indicates that Ethereum is signaling a strong buying opportunity based on the Market Value to Realized Value (MVRV) metric.
According to Santiment, traders active in the past 30 days are currently sitting on average losses of 12.8%, signaling widespread short-term pain.
From a longer-term perspective, traders who have been active over the past year have also slipped slightly into the red, with an average return of -0.3%.
“When both the short-term and long-term MVRV’s for an asset sit in negative range, this historically signals a strong opportunity to buy at low risk while there is ‘blood in the streets,” Santiment posted.
Overall, the combination of heavy whale accumulation, declining exchange reserves, and favorable on-chain metrics suggests growing investor confidence in Ethereum. If these trends continue, Ethereum could be poised for a price recovery if broader market conditions stabilize.
