The largest owners of Ethereum without an exchange are tiptoe back into the reservoir. On-chain analytics platform Santiment reported that wallets holding between 100 and 10,000 ETH, also known as whales and sharks, began to restore positions after emptying approximately 1.36 million ETH between October 5 and 16.
Significantly, Ethereum’s collective holdings chart shows that nearly one-sixth of those coins have already been returned, because little by little confidence is starting to return to the second largest crypto asset.
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Whales reverse course after capitulation in early October
The first half of October was marked by one of the most pronounced periods of Ethereum capitulation this year. Macroeconomic fears over US tariffs have weighed on the price of Bitcoin suffer a flash fall which has dragged many altcoins down. During this move, the price of Ethereum it also fell very quicklyfalling from highs of around $4,740 on October 7th to as low as $3,680 on October 11th.
interestingly, show the data in the chain that selling pressure from large holders fueled the move, as Santiment’s chart shows their cumulative holdings plummeting from around 24.5 million ETH to roughly 22.6 million ETH. This drop of 1.9 million ETH reflects the clear behavior of whales and sharks who have been net buyers since August.
However, after the selling momentum began to fade, the accumulation began to return. Institutional inflows have started to return to Spot Ethereum ETFs and whale/shark trades started hoarding Ethereum. From October 16, the same cohort that contributed to the liquidation began to return to their positions. Santiment noted that these incumbents are finally showing some signs of confidence, showing the upcoming extended recovery phase after the shakeout.
218,470 ETH added in the last 7 days
According to Santiment data, the collective holdings of addresses with 100 to 10,000 ETH have recovered to approximately 23.05 million ETH after bottoming out in mid-October. The highlighted note on the chart shows that 218,470 ETH have been accumulated in the past week alone, signaling a tangible change in behavior on the chain.
Ethereum collective wallet holdings holding 100-10,000 ETH. Source: Sentiment
This increase represents roughly one-sixth of the previously discarded coins, a sign that mainstream investors are gradually re-entering the market after what appeared to be a phase of exhaustion. Similar accumulation trends have often preceded a broader Ethereum price recovery, especially when accompanied by a stabilization of the ETH/BTC trading pair.
As it stands, Ethereum price seems to be building a firmer base for its next phase recovery goes in November. When whale wallets 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 $3940 and is about to be discontinued and closed above $4,000 again. Both Ethereum and Bitcoin have risen slightly in recent days after the inflation report showed US inflation cooling to 3% in September, below the 3.1% forecast by economists.
Featured image from Unsplash, chart from TradingView
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