Ethereum Drops 10% as Whales Accumulate Amid Market Decline

While Ethereum’s price action paints a bearish picture, blockchain analytics tell a different story. According to on-chain platform Lookonchain, BitMine Immersion Technologies, the Ethereum-focused digital asset treasury firm led by Wall Street strategist Thomas Lee, remains active in the market despite the downturn. The analytics platform identified a new wallet, likely linked to the company, receiving 9,176 ETH from the Galaxy Digital OTC wallet—a transaction worth approximately $29.14 million at current prices.

The institutional accumulation extends beyond traditional finance players. Taiwanese music celebrity and digital asset investor Jeffrey Huang, known on-chain as “Machi Big Brother,” along with his brother “Machi Small Brother,” have both maintained significant long positions in ETH. As prices fell, Machi Big Brother added 7,400.7 ETH (worth $23.55 million) on Hyperliquid with a liquidation price of $3,040.6, while Machi Small Brother deposited 5,000 ETH (valued at $15.9 million) and additional margin to avoid liquidation, with a liquidation price of $2,794.71.

Perhaps most notably, another whale investor identified as 66kETHBorrow added another 16,937 ETH worth $53.91 million, raising their total purchases to an astonishing 422,175 ETH—approximately $1.34 billion at current valuations. These substantial transactions indicate that sophisticated investors view the current price levels as accumulation opportunities rather than exit points.

The market is witnessing a clear divergence in investor behavior that creates competing pressures on Ethereum’s price. Crypto analyst Ali Martinez reported that 2.53 million ETH were bought at around $3,150, essentially establishing this level as a strong support zone as buyers stepped in heavily during the recent price drop. This substantial buying activity suggests that many market participants see current levels as an attractive entry point.

However, not all investor cohorts are reacting the same way to the price decline. Glassnode’s latest analysis reveals that long-term Ethereum holders have sharply increased their spending activity during the recent market pullback. Since late August, as ETH retreated from its peak, wallets holding ETH for 3 to 10 years have accelerated their average daily distribution to more than 45,000 ETH per day based on the 90-day simple moving average.

This surge represents the highest spending level from seasoned investors since February 2021, indicating that a segment of long-term holders is taking profits or reallocating as market conditions weaken. The simultaneous activity of accumulation by whales and distribution by long-term holders creates a dynamic tension that will likely determine Ethereum’s near-term price direction.

The current market structure presents a classic battle between short-term price pressure and long-term accumulation. The substantial whale activity, particularly from entities like BitMine Immersion Technologies and individual investors like Jeffrey Huang, suggests that experienced market participants see fundamental value in Ethereum at current levels. Their willingness to deploy significant capital during a downturn indicates confidence in Ethereum’s longer-term prospects.

Meanwhile, the liquidation prices for the Machi brothers’ positions—$3,040.6 and $2,794.71 respectively—provide technical levels that market watchers are monitoring closely. These levels could serve as potential inflection points if selling pressure continues. The $3,150 support level identified by Ali Martinez, backed by 2.53 million ETH in buying activity, represents another critical technical zone that could determine whether the current decline represents a healthy correction or the beginning of a more sustained downtrend.

The contrasting behavior between accumulating whales and distributing long-term holders reflects the complex nature of cryptocurrency markets, where different investor timeframes and strategies create layered market dynamics. As Ethereum navigates these competing forces, the outcome will likely depend on whether institutional accumulation can overcome the profit-taking pressure from seasoned holders who have been through multiple market cycles.