Despite a sharp 12% price drop for Ethereum in early November, major investors moved quickly to capitalize on the lower prices. In just three days, large-scale holders, often called whales, purchased approximately $1.37 billion worth of ETH, signaling strong confidence in the asset even as the broader market faces pressure.

Whale Activity Intensifies

The accumulation followed one of Ethereum’s most significant single-day price drops in months, which saw the cryptocurrency dip to a near four-month low of around $3,000. While the price has since staged a modest recovery, on-chain data reveals that sophisticated investors viewed the downturn as a prime buying opportunity.

According to analytics firm Lookonchain, eight major entities collectively acquired 394,682 ETH over a three-day period at an average price of $3,462. The largest buyer was a single entity identified as an “Aave whale,” who purchased 257,543 ETH for about $896 million.

The second-largest purchase came from Bitmine Immersion Technologies, which added 40,719 ETH valued at nearly $139.6 million to its holdings. This move is consistent with the firm’s recent strategy of accumulating Ethereum during market pullbacks, following similar large investments in late October.

On-Chain Data Signals Investor Confidence

Broader network trends support the narrative of growing investor conviction. Data from CryptoQuant shows that the amount of Ethereum held on exchanges has fallen to its lowest level since 2016. A decline in exchange reserves typically suggests that investors are moving their assets into long-term storage rather than preparing to sell, which can reduce selling pressure and support price growth.

Further analysis from Santiment highlights a key metric, the Market Value to Realized Value (MVRV), which is flashing a potential buy signal. The MVRV ratio indicates that traders who purchased ETH within the last 30 days are, on average, at a 12.8% loss. Even investors who have held for a year have slipped into a slight loss.

Santiment noted that when both short-term and long-term MVRV metrics are negative, it has historically signaled a strong, low-risk opportunity to accumulate an asset. The combination of heavy whale buying and favorable on-chain indicators suggests a robust belief in Ethereum’s future potential among its largest holders.

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