Ethereum Is Changing: From Panic Selling to Smart Accumulation
Ethereum is going through one of its biggest changes since August. Since October 6, its price has dropped more than 35%. This caused many traders to panic, leading to a lot of forced selling, or liquidations.
But this is not just a crash — it's a major shift in who owns Ethereum. The market is moving from short-term traders to long-term, stronger holders like institutions.
Old Holders Take Profit, Traders Get Liquidated
For the first time since 2021, many early Ethereum investors — people who have held ETH for 3–10 years — are selling large amounts. According to Glassnode, they are selling over 45,000 ETH per day (using a 90-day average). These investors are not panicking; they are just taking profits after holding for years.
One example is an investor from Ethereum’s 2014 ICO. After almost 10 years of not touching their wallet, they moved 200 ETH (worth about $626,000). They originally spent only $310 to buy 1,000 ETH, which is now worth over $3.13 million — a return of more than 10,000 times.
At the same time, traders using high leverage (borrowed money) are facing massive losses. A well-known trader named Machi got liquidated again, losing over $18.9 million, but still reopened a risky long position.
Another major event involved a whale (large holder) who had borrowed 66,000 ETH. As prices dropped, they had to withdraw 199,720 ETH (about $632 million) to avoid liquidation. They even sent 44,000 ETH to Binance to close the position, resulting in losses of over $70 million — one of the biggest losses in this cycle.
Institutions Are Quietly Accumulating ETH
While retail traders and short-term investors are selling, large institutions are buying and holding ETH for the long term.
For example:
- BitMine, a digital-asset treasury company, now holds 3.5 million ETH, which is 2.9% of all ETH supply. They plan to reach 5%. They don’t trade — they stake and hold ETH to earn long-term rewards.
- SharpLink holds 859,400 ETH worth about $2.74 billion and has already earned over 7,067 ETH from staking.
Together, BitMine and SharpLink now hold over 4.35 million ETH. Most of this ETH is staked, meaning it is locked up and removed from the trading market.
However, while these institutions are buying, Ethereum spot ETFs are seeing record withdrawals — over $1.2 billion this month. This shows retail and ETF investors are selling, while institutions are accumulating.
Why This Feels Chaotic — But Is Normal
Right now:
- Retail ETF investors are selling out of fear.
- Leverage traders are getting liquidated.
- Long-term holders are taking profits.
- Institutions are quietly buying large amounts for long-term staking.
That’s why the market feels chaotic — but in reality, Ethereum is moving from weak hands to strong hands.
The ETH “Supercycle” Vision
Tom Lee from BitMine believes Ethereum is entering a “Supercycle,” similar to early Bitcoin. He says big price drops are part of the journey. According to Lee and other institutions, Ethereum will be the main settlement layer for the global digital economy.
Why? Because Ethereum supports:
- Stablecoins
- Layer 2 networks (L2s)
- Derivatives
- Real-world assets (RWAs)
- Institutional finance and custody
This creates constant demand for ETH, not just for trading — but for actual economic use.
