Ethereum News Today: Ethereum Whales' Diverging Bets Signal Tug-of-War as Market Hits Oversold Levels

Ethereum (ETH) whales have accumulated 323,000 ETH in recent days amid a sharp price decline, signaling potential market bottoming activity as retail and institutional players navigate heightened volatility. On-chain data reveals a mix of aggressive long-positioning and liquidations among major holders, with some addresses increasing leverage while others exit bets, reflecting diverging views on the asset's near-term trajectory.

The "1011 Insider Whale" has notably ramped up its ETH exposure, boosting its leveraged long position to 8,000 ETH (worth $26.12 million) by increasing leverage fivefold, according to a a Lookonchain feed. Separately, the "7 Siblings" dip-buying whale added 37,971 ETH over two days, spending 133.49 million USDC at an average price of $3,515. These moves contrast with the "100% Win Rate Whale," which liquidated its remaining long position for a $39.37 million loss, marking its first defeat after 14 consecutive profitable trades. Meanwhile, a suspected Bitmine address increased its holdings by 10,000 ETH ($32.72 million), further underscoring speculative interest.

The price dip, which saw ETH fall below $3,400 on November 4, triggered $1.1 billion in crypto liquidations, erasing ETH's 2025 gains and pushing Bitcoin (BTC) near $100,000, according to a Bitget report. Despite institutional outflows, individual investors continued to accumulate ETH, with blockchain data showing a $24.48 million short-covering move by a whale. Analysts point to the Relative Strength Index (RSI) hitting oversold levels as a potential indicator of a market rebound.

The broader market context is shaped by macroeconomic pressures and regulatory developments. Raoul Pal, CEO of Real Vision, predicts a crypto recovery driven by liquidity injections and the CLARITY Act, which could enable banks to custody spot crypto ETFs, according to a Coinotag article. The U.S. government shutdown has tightened liquidity, with the Treasury General Account nearing $1 trillion, while the Federal Reserve's $30 billion in overnight repo operations aims to stabilize markets. Pal argues that post-shutdown Treasury spending of $250–350 billion and CLARITY Act implementation could unlock institutional capital flows, historically preceding risk-on sentiment reversals.

Ethereum's recent on-chain activity aligns with broader trends in crypto markets. The "1011 Insider Whale" also moved 500 BTC ($50.54 million) to Kraken, according to a Coinotag report, while Bitcoin whale Owen Gunden deposited 1,288.76 BTC ($138.23 million) to the exchange, as shown in a Lookonchain feed. These moves suggest a shift toward centralized liquidity as investors seek to capitalize on potential rebounds.

The accumulation by whales and retail buyers highlights a tug-of-war between bearish leveraged unwinds and bullish positioning. While leveraged longs face liquidation risks—$287 million in long trades were erased in one hour on November 4—the market's oversold conditions and regulatory clarity could catalyze a rebound. Pal's analysis ties these dynamics to historical patterns, where liquidity tightness preceding government spending often triggered market reversals.