Ethereum Whales Return: Bullish Signal for ETH Price

Between October 5 and 16, Ethereum’s largest investors—wallets holding between 100 and 10,000 ETH—executed a massive sell-off of 1.36 million tokens according to analytics platform Santiment. This period coincided with extreme price volatility that saw ETH surge beyond $4,750 only to crash below $3,500 during the market-wide collapse on October 10. The coordinated selling by these so-called sharks and whales represented significant downward pressure on the asset during a period of market uncertainty.

However, Santiment’s latest analysis reveals a dramatic shift in behavior over the past week. These large investors have begun reaccumulating ETH at what the platform describes as an “impressive pace,” adding back approximately one-sixth of their sold-off positions. The analytics firm classified this reversal as a “positive sign for crypto’s #2 market cap” and noted that whales are “finally showing some signs of confidence” after weeks of uncertainty.

Tom Lee, who has been behind Bitmine’s substantial ETH purchases over recent months, remains highly bullish on the asset despite October’s turbulence. Lee, whose company holds nearly $13 billion in Ethereum, pointed to the October 10 crash as a necessary market cleansing event. The crash, primarily driven by excessive leverage in futures trading, wiped out over $19 billion and affected more than 1.6 million traders in less than 24 hours.

According to Lee, this leverage wipeout has created ideal conditions for a sustained rally. He recently noted that open interest for both BTC and ETH has fallen to historic lows, which he believes could open the door to a “crypto rally into the end of the year.” His analysis suggests that with excessive leverage removed from the system, the market is positioned for organic growth rather than speculative trading pressure.

The return of large investors to accumulation mode typically signals reduced immediate selling pressure and increased confidence in an asset’s fundamentals. When sharks and whales—entities holding between 100 and 10,000 ETH—buy substantial portions of an asset, they effectively remove liquidity from the market, creating conditions conducive to price appreciation. This behavioral shift comes as the crypto community buzzes with price predictions for Ethereum.

Analyst Ali Martinez recently outlined his perspective on ETH’s price trajectory, acknowledging that Ethereum will eventually hit $10,000 but cautioning that it “just not as soon as you think.” The more immediate target of $5,000 appears achievable in the short-term, given that ETH came within striking distance of this level just months ago. The combination of whale accumulation, cleaned-up leverage, and realistic price targets creates a compelling narrative for Ethereum’s near-term prospects.

The synchronized movements of large investors, coupled with fundamental market improvements and expert analysis, suggest Ethereum may be entering a new phase of stability and growth. While the path to $10,000 remains longer-term, the current conditions—characterized by whale confidence, reduced leverage, and clear technical targets—provide a solid foundation for renewed bullish momentum in the world’s second-largest cryptocurrency.