Ethereum News Today: Crypto Whales Split: ETH Accumulation and Profit-Taking Drive October Volatility Amid Mixed Signals

Ethereum (ETH) experienced significant volatility in late September and early October 2025, with prices plunging below the $4,000 psychological threshold amid intense whale activity. Large holders, or "whales," executed a mix of strategic accumulation and profit-taking, while leveraged long positions faced mass liquidations. Over $178.5 million in ETH longs were wiped out during the downturn, including a $29.12 million liquidation on Hyperliquid. Despite the turmoil, whales accumulated over 406,000 ETH ($1.6 billion) during the decline, with some entities acquiring 201,000 ETH ($855 million) in a single day. This divergence in whale behavior highlighted a divided market sentiment, with some viewing the dip as a long-term buying opportunity and others as a bearish signal.

Bitcoin (BTC) saw parallel movements, with a major whale offloading 2,370 BTC ($266 million) while simultaneously amassing 167,629 ETH ($706 million). On-chain data revealed that BTC whales had accumulated over $3 billion in large addresses, signaling long-term confidence despite periodic profit-taking. Ethereum benefited from this reallocation, with whales swapping BTC for ETH in anticipation of upcoming upgrades and DeFi growth. Institutional interest in Ethereum also surged, with corporate holdings rising from 2% to 3.93% of total supply since April, reflecting a broader shift toward Ethereum-based assets.

Altcoin activity further underscored the complexity of whale strategies. ONDO, POL, and LINK attracted significant accumulation, with ONDO whales acquiring 27.8 million tokens ($25 million) ahead of anticipated SEC tokenization discussions. Polygon (POL) saw 50 million tokens ($12 million) added to whale wallets, pushing its price up 30% despite no major announcements. Chainlink (LINK) experienced a spike in large transactions, rising from 150 to 211 in a week, coinciding with a $12.50 to $15 price jump. ASTER also drew attention, with three whale wallets withdrawing $10 million in tokens, including a 7.04 million ASTER ($4.66 million) transfer. These moves suggested growing confidence in altcoins with real-world utility, though liquidity risks and regulatory uncertainties remained concerns.

The market's response to whale activity was mixed. While accumulation by long-term holders hinted at potential rebounds, ETF outflows and bearish shorting by entities like Grayscale added downward pressure. Ethereum spot ETFs in the U.S. recorded $795.56 million in outflows over five days, the largest since their launch. Derivatives markets reflected bearish sentiment, with short positions dominating at 52.86% of total open interest ($4.78 billion). However, bullish on-chain metrics, such as a 2.48 ETH/USDT long-to-short ratio on Binance, indicated lingering optimism among traders.

Regulatory and macroeconomic factors loomed large. The volatility sparked renewed calls for stricter oversight of leveraged trading and stablecoins, with regulators scrutinizing ETF structures. Ethereum's Dencun Upgrade, which slashed transaction fees, and institutional adoption of its DeFi infrastructure were seen as long-term positives. Analysts noted that while short-term corrections were likely, Ethereum's fundamentals-including its role in smart contracts and tokenization-positioned it to outperform rivals if macroeconomic conditions stabilized.

In summary, October 2025 marked a pivotal period for crypto whales, with strategic moves across BTC, ETH, and altcoins shaping market dynamics. The interplay of accumulation, profit-taking, and regulatory scrutiny highlighted a maturing market where whale behavior increasingly influenced price action. While volatility persisted, the underlying shift toward Ethereum-based ecosystems and institutional-grade infrastructure suggested a path toward more sustainable growth.