Ethereum News Today: Institutions Stockpile 2.5% of Ethereum's Supply Amid Dip-Driven Buying Spree

The recent collapse in cryptocurrency prices, triggered by President Trump's surprise 100% tariff announcement on Chinese software imports and export restrictions on U.S. rare earth minerals, has sparked a wave of institutional and whale-driven accumulation in Ethereum (ETH). Bitmine Immersion Technologies, led by Fundstrat Capital CIO Tom Lee, emerged as a major player, acquiring 128,718 ETH (worth $480 million) post-crash, boosting its holdings to 2.96 million ETH-nearly 2.5% of the total supply and second only to MicroStrategy .

The sell-off saw Bitcoin and Ethereum plunge by 13% and 20%, respectively, wiping out $20 billion in derivatives open interest within hours. Amid the chaos, Bitmine's "buy the dip" strategy unfolded as it withdrew ETH from exchanges like FalconX and Kraken using newly activated wallets. On-chain analytics firm Lookonchain noted that ETH was acquired at levels as low as $3,728, with additional multimillion-dollar accumulations reported from institutional whales .

Ethereum's price drop below $4,000 in late September reignited whale activity. According to BeInCrypto Markets, 15 wallets received 406,117 ETH ($1.6 billion) from major platforms, signaling strategic long-term positioning. Analysts like Cas Abbé highlighted that these moves could precede broader institutional buying, while Darkfost noted record inflows into accumulator addresses-wallets that have never sold ETH-absorbing 400,000 ETH in a single day .

The accumulation trend is not isolated. Since April 2025, Ethereum whales have increased holdings by 14%, adding 5.5 million ETH, according to Santiment. This surge aligns with Ethereum ETF inflows of $3.87 billion in August, contrasting with Bitcoin ETF outflows of $751 million . Meanwhile, Bitmine's treasury now includes $8.22 billion in ETH, while Sharplink Gaming holds $3.69 billion, further tightening Ethereum's supply .

The price plunge also triggered $1.13 billion in liquidations across crypto markets, with Ethereum accounting for $409.6 million. Darkfost attributed this to a sharp decline in open interest, particularly on Binance, where $3 billion was wiped out in a single day. However, he noted that such liquidations often clear outleveraged positions, creating conditions for market stabilization .

Not all whale activity is bullish. One whale recently sold 3,158.5 ETH for $13.2 million in DAI at $4,376, ending an eight-month holding period and securing a $6.43 million profit . Another whale converted 1,692 ETH into DAI and WBTC over eight hours, signaling a strategic shift in portfolio allocation . These moves highlight the dual nature of whale behavior-some capitalize on volatility, while others hedge against further downturns.

Despite short-term turbulence, institutional confidence in Ethereum remains strong. Bitmine's $2 billion in unrealized losses has not deterred its aggressive accumulation strategy, which includes staking and liquidity protocols to generate yields. Ted Pillows, a crypto influencer, remarked, "Institutions are not scared to buy Ethereum," echoing broader sentiment among whale holders .

Analysts like Shay Boloor argue that Ethereum's dip below $4,000 is a buying opportunity, citing support from figures like Tom Lee and Stanley Druckenmiller. Boloor also highlighted U.S. government reliance on stablecoins tied to Ethereum, suggesting "opportunity under $4,000" . Meanwhile, Altcoin Gordon predicted ETH could appreciate by December, urging investors to accumulate at current levels .

Ethereum's path forward hinges on balancing whale-driven accumulation with macroeconomic headwinds. While Trump's tariffs and regulatory uncertainty persist, Ethereum's institutional adoption and network upgrades-such as Ethereum 2.0-remain key catalysts. Projects within the DeFi and NFT ecosystems stand to benefit from increased liquidity, though market observers caution that further volatility could test investor resolve.

As one whale's $3.4 million loss in a "sell high-buy low" misstep illustrates, timing the market remains fraught with risk. Yet, with Ethereum treasury companies now holding 3% of total supply, the long-term narrative of Ethereum's scarcity and utility appears resilient .

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[1] Bitmine acquires 128,718 ETH after the crash as institutions buy the dip (https://bitxnewss.blogspot.com/2025/10/bitmine-acquires-128718-eth-after-crash.html)

[2] ETH Dips 9%: Whales Buy the Dip | Codeum Smart Contract Audit (https://codeum.org/news/eth-dips-whales-buy-the-dip)

[3] ETH Whales Buy the Dip as Ethereum Breaks $4,000 Support (https://beincrypto.com/ethereum-whales-accumulate-below-4000/)

[4] Ethereum Whales Continue to Buy the Dip, Pushing ETH Price to 197% Gains in 5 Months (https://www.thecoinrepublic.com/2025/09/04/ethereum-whales-continue-to-buy-the-dip-pushing-eth-price-to-197-gains-in-5-months/)

[5] Ethereum Whale Cashes Out Millions in DAI After Price Rally (https://blockchainreporter.net/ethereum-whale-cashes-out-millions-in-dai-after-price-rally-13-2-dai-earned/)

[6] Whale Executes $4.31M ETH Swap to DAI and WBTC, Signaling Portfolio Shift (https://bitprismia.com/whale-executes-4-31m-eth-swap-to-dai-and-wbtc-signaling-portfolio-shift/)