ETH Whales Accumulate as Ethereum Falls Below $4,000

Ethereum (ETH) recently fell below $4,000, indicating renewed market uncertainty. Some analysts foresee further declines, but large holders are taking advantage of the dip to accumulate more ETH. This activity points to faith in the asset’s long-term value, even amid current volatility.

Whale Moves During ETH’s Dip?

Ethereum’s recent fall has caused debate in the market. Economist Peter Schiff points to a 20% drop from August’s peak and calls it a bear trend. However, major crypto wallets are acting differently. Lookonchain shows 15 big wallets received more than 400,000 ETH, worth about $1.6 billion, from exchanges including Kraken, Galaxy Digital, BitGo, and FalconX.

This activity looks like deliberate accumulation. Many of these wallets never sell ETH and keep receiving large deposits, suggesting long-term investment. On September 18 alone, about 1.2 million ETH went into these wallets, marking a record inflow.

Industry experts say whale activity can show confidence from institutions. Cas Abbé noted that whales are already buying, and institutions are likely to follow. Altcoin Gordon said ETH is close to a long-term buying zone. For big holders, the current price is seen as a buying opportunity.

Institutional Confidence Amid Market Volatility

ETH dropping below $4,000 has caused concern for retail traders, but institutions remain confident. Investors such as Tom Lee and Stanley Druckenmiller continue to back Ethereum, and their strategic moves indicate that ETH remains crucial for crypto infrastructure and the development of new financial products.

The growth of addresses possibly linked to ETH ETFs is especially significant. Darkfost pointed out that some major accumulators may represent institutions offering these products, whose demand has increased substantially in recent months. The surge in long-term holdings seems to align with this institutional interest, suggesting a coordinated strategy rather than random buying.

Ethereum’s importance in the broader financial system remains evident. Stablecoins, which are central to treasury operations and financial settlements, are primarily issued on ETH. According to market strategist Shay Boloor, this underlying demand can provide stability even amid sharp market declines. Headlines may focus on the price drop, but the structural dynamics point to resilience and deliberate accumulation.

The Effect of Volatility on Traders

Not all market participants have benefited from Ethereum’s recent price movements. Traders using leverage have been hit hardest, with Coinglass reporting over 246,000 liquidations in the crypto market over the past 24 hours, totaling $1.13 billion. Ethereum alone accounted for $409.6 million of these liquidations, mainly affecting long positions. The largest single liquidation was $29.12 million on Hyperliquid.

These forced sales have lowered Open Interest on major platforms, with Binance seeing more than $3 billion wiped out on September 23. While painful for traders with high leverage, these corrections often reduce selling pressure and allow the market to stabilize. Darkfost noted that similar adjustments in the past have often come before periods where whales or large investors help support price recovery.

Takeaways from Ethereum’s Price Dip

Ethereum dropping under $4,000 has created short-term worry, particularly for leveraged traders. Still, increased activity from large holders and big wallets shows that long-term investors see this as a chance to buy. This points to confidence in Ethereum’s value and importance in crypto.

While the market is volatile, strategic buying by whales and institutions may help keep it steady. Retail traders may feel the pressure of forced selling, but coordinated accumulation hints at a possible foundation for recovery and a more solid market structure in the near future.