The second-largest cryptocurrency started last month on the right foot but ultimately plunged by more than 16%. In fact, this was the second-worst October in the asset’s history.
Some factors that likely contributed to the downfall include overall market weakness, massive outflows from spot ETH ETFs, the multi-billion-dollar hack on Binance, which shook the sector, and persistent selling from wallets linked to the Ethereum Foundation. Lately, though, some large investors have launched a buying spree, which could open the door to a short-term rebound.
From Sell to Buy
CryptoPotato reported that toward the end of October, an address tied to the Ethereum Foundation offloaded 2,785 ETH for around $6.42 million, while another investor dumped 1,500 units (about $3.46 million) after nine years of inactivity.
The heavy selling persisted, and several days later, another market participant linked to the Ethereum Foundation parted with 7,594 ETH (around $17.8 million) after remaining dormant for a year. Popular analyst Ali Martinez noted the major selling spree by whales, calling it one of the bearish factors that could push the asset’s price toward $2,000 in the near future.
One might expect the $6.3 billion Binance hack to spook investors and push even more to cash out, yet some appear to have interpreted the event as an opportunity to increase their exposure.
Lookonchain revealed that whales have been buying ETH “like crazy.” The analytics platform said a trader known as 0x9EcA spent almost $38 million to buy 16,658 ETH at an average price of $2,279. Shortly after, it disclosed that the market participant had purchased a total of 27,553 units for nearly $63 million.
For their part, X user Mookie revealed that traders “are betting big on recovery,” with long positions surpassing 380,000 ETH. According to the analyst, the figure is four times higher than the level recorded in August, when the asset surged from roughly $1,800 to more than $2,500.
The whales’ efforts are a clear bullish sign and could precede a price rally. After all, such massive accumulations leave fewer coins available on the open market, which, combined with non-declining demand, should result in a pump. Additionally, smaller players may mimic the move and distribute fresh capital into the ecosystem.
The Upside Targets
As of press time, ETH trades just below $2,300, with X user Ted noting it has successfully reclaimed the $2,250 support zone. Moreover, he thinks breaking above $2,400 could be followed by “a nice rally.”
Prior to that, the analyst was much more bullish. He expects “the monster pump” to start once ETH surpasses $4,000, predicting that it might explode to a new all-time high of $13,000-$15,000 this cycle. CRYPTO XLARGE shared a similar thesis, saying:
“ETH above $4,000 could be the catalyst for its next major rally. A confirmed breakout may unlock significant upside, with $13K–$15K ETH remaining my target for this cycle. The key level to watch is $4,000.”
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