Ethereum News Today: Whales Feast on Ethereum's Fall as Retail Traders Flee

Ethereum (ETH) experienced a sharp decline to $3,510 on October 11, 2025, amid a broader market sell-off triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports. The move reignited trade war fears, causing over $16 billion in leveraged crypto longs to be liquidated globally, with Bitcoin (BTC) and Ethereum among the hardest-hit assets. By midday Hong Kong time, Ethereum had dropped nearly 10% from its previous 24-hour high, while the CoinDesk 20 Index fell 12.1% Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1].

The collapse prompted significant activity from large investors, or "whales," who continued to accumulate Ethereum at discounted prices. BitMine Immersion Technologies, the largest corporate holder of ETH, revealed it had purchased 2.83 million ETH at an average cost of $4,535 per token, totaling $12.8 billion. However, Ethereum's price decline left BitMine with an unrealized loss of $2.13 billion as of October 5, with the asset trading at $3,510. Despite this, the firm doubled down, withdrawing an additional 33,323 ETH ($126.4 million) from exchanges like Kraken and FalconX. This buying spree mirrored broader institutional sentiment, with another OTC whale purchasing 14,165 ETH ($55.5 million) across multiple platforms BitMine Sees an Unrealized Loss of $2.13B in Ethereum^[2].

Conversely, panic selling emerged among smaller holders and illicit actors. Hackers linked to two wallets sold 5,480 ETH ($20.47 million) at a $3.7 million loss, reflecting heightened market anxiety. Meanwhile, retail traders faced a "bear market PTSD"-driven sell-off, with on-chain data showing increased outflows from small wallets. This divergence between whale accumulation and retail exodus created a volatile environment, as noted by on-chain analyst Ignas, who observed that "retail traders are offloading crypto holdings straight into the hands of big whales and institutions" BitMine and Mystery Whale Buy $882M in Ethereum …^[4].

The sell-off also exposed weaknesses in stablecoin pegs. Ethena's USDe, a dollar-pegged stablecoin, briefly dipped to $0.9996, highlighting systemic risks during sharp price swings. The Ethena team confirmed minting and redemption operations remained functional but emphasized increased overcollateralization due to unrealized gains from short positions Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1].

Market indicators reflected mixed signals. The Fear and Greed Index registered neutrality, while the Cumulative Volume Delta (CVD) showed bearish pressure, with selling volumes outpacing buying activity. Ethereum's bid-ask spread widened, signaling reduced liquidity and higher trading costs for retail investors. Despite these challenges, some analysts argued that sustained retail demand could stabilize the price. For example, Ethereum's 30-day trading volume surged to $9.72 trillion in August, with Gate Exchange seeing a 98.9% increase in volume to $746 billion Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1].

The Trump-driven sell-off coincided with broader macroeconomic uncertainty. A U.S. government shutdown delayed key economic data releases, exacerbating market anxiety. Meanwhile, BlackRock's Ethereum accumulation accelerated 15x faster than Bitcoin over the past 30 days, with ETH holdings growing 65% compared to 4% for BTC . This institutional focus on Ethereum underscored its perceived long-term value, despite short-term volatility.

As of October 11, Ethereum traded at $3,780, up from its intraday low but still 16.5% below BitMine's average cost. The asset's path forward hinges on whether retail selling pressure can be offset by institutional buying. Analysts noted that Ethereum's bid-ask spread and liquidity conditions remain critical watchpoints, with tighter spreads potentially signaling improved market stability.