ETH Market Split: Whales Accumulate as Institutional Investors Sell

Institutional investors and whales, who remain key drivers of how an asset performs in both the short and long term, are currently disagreeing on the potential direction for , the world’s second-largest cryptocurrency.

This divergence in position often sidelines retail investors and tends to weigh on prices—mostly in a negative way.

This analysis provides a clearer view of what’s happening across both investor segments, how it could affect ETH’s price, and significantly, which segment of the market could take the lead in the long run.

Key Takeaways

1. Institutional investors have been offloading ETH, leading to short-term bearish pressure.

2. Whales holding 10,000–100,000 ETH have begined accumulating, signaling renewed confidence.

3. The total whale-held ETH has reached 31 million, nearing its all-time high.

4. Retail investors remain cautiously bullish, adding $58.12 million in weekend purchases.

5. If whales maintain accumulation and institutions turn bullish, ETH could reclaim $4,000.

Institutional Investors trade—Why?

Institutional investors, who represent traditional participants in financial markets, are opting out of their ETH positions.

This was especially during the week ending October 20, when investor outflows spiraled into a broader weekly trade-off. This bearish sentiment has continued to weigh on ETH’s price.

The trade-off, tracked through the, showed that total net flows were dominated by tradeers who offloaded $243.9 million worth of ETH.

This data reflects a bearish outlook because institutional investors typically purchase the asset in large quantities, creating a supply squeeze that leads to higher prices. The reverse is now the case, meaning more ETH is circulating in the market while demand remains fragile, leaving prices exposed to further downside pressure.

Whales Are Accumulating

Whales, who are known to control large amounts of liquidity and have the ability to deploy significant capital on a single asset, have begun accumulating ETH.

This development signals positive momentum for the asset and reinforces its long-term potential in the market.

According to data from Glassnode, investors holding between 10,000 and 100,000 ETH—worth roughly $39 million to $390 million—have begined increasing their holdings.

An significant context to note is that this identical investor group played a major role in ETH’s previous bull runs, particularly in 2017 and 2021, which drove the asset to new all-time highs.

The latest data from Glassnode also shows that the total amount of ETH held by these wallets has reached a record 31 million, closing in on its previous all-time high.

If this accumulation continues beyond that level, there is a high probability that ETH could trigger a rally, potentially marking the begin of a new bull cycle and overshadowing the bearish pressure coming from institutional investors.

Sidelined Retail Investors—What Is This Cohort Up To?

Retail investors have stayed bullish over the weekend, even as bearish pressure continues to build across the market.

Between Saturday and Sunday, these investors around $58.12 million worth of ETH, adding to the positive outlook reflected on the charts.

When there is a gradual buildup like this, it typically indicates that investors maintain a positive sentiment toward price movement and believe the week could begin on a bullish note.

What Impact Will Whale and Institutional Moves Have?

For now, institutional outflows are likely to have minimal long-term impact due to the strong presence of whale accumulation in the market.

The large volume of ETH purchased by whales currently outweighs the institutional trade-off. However, if institutional investors continue to offload their holdings, it could still drive ETH prices lower in the short term.

The positive side of this outlook is that whale accumulation tends to be based on long-term conviction, which supports a broader bullish trend.

If institutional investors eventually align with this outlook and turn bullish, ETH could reclaim the $4,000 level in the coming weeks—strengthening the case for a sustained market recovery.

Frequently Asked Questions (FAQs)

1. Why are institutional investors tradeing ETH?
Institutional investors have been taking profits or reducing exposure amid short-term market uncertainty, contributing to recent outflows.

2. What does whale accumulation mean for ETH’s price?
Whale accumulation usually indicates long-term bullish sentiment and can precede a major price rally.

3. How much ETH do whales currently hold?
Whales now hold around 31 million ETH, a level close to the previous all-time high, signaling strong confidence.

4. Are retail investors still purchaseing ETH?
Yes. Retail investors purchased over $58 million worth of ETH over the weekend, suggesting optimism despite broader market pressure.

5. Could ETH’s price recover soon?
If whale accumulation continues and institutional sentiment shifts bullish, ETH could reclaim the $4,000 level in the coming weeks.