Ethereum Falls 4% as Whales Accumulate — Bullish Divergence or Trap?

Ethereum

Ethereum Falls 4% as Whales Accumulate — Bullish Divergence or Trap？

• Bitmine adds 63,539 ETH, bringing total holdings to $13.07B or 2.73% of supply
• Ethereum ETFs see $145.7M in outflows led by BlackRock and Fidelity on Oct 20
• ETH rejected at $4,100 and now tests key support near $3,800 amid rising volatility

Ethereum saw heightened whale activity as Bitmine acquired 63,539 ETH (worth $251.6 million), according to data from Lookonchain. The ETH was moved into three new wallets from Kraken and BitGo, signaling a fresh wave of accumulation.

Bitmine now controls 3,299,553 ETH, valued at approximately $13.07 billion, representing 2.73% of total supply. Separately, wallet 0xAeA5 withdrew another 7,527 ETH from OKX, with 11,860 ETH ($46.26 million) withdrawn in the past week.

These large withdrawals and purchases suggest strong accumulation behaviour by major players, potentially positioning for long-term upside. However, such divergence between whale activity and price action can also precede short-term reversals.

ETF Outflows Rise as ETH Faces Rejection at $4,100 Resistance

Despite whale confidence, Ethereum-based ETFs registered $145.7 million in net outflows on October 20, according to analyst Ted. BlackRock‘s ETHA saw the largest withdrawal at $117.9 million, followed by Fidelity’s $27.8 million outflow.

Source: X

This marks one of the biggest single-day outflows in recent weeks, reflecting weakening institutional sentiment. While whales accumulate, these outflows suggest some funds are exiting ETH exposure amid macro uncertainty and Fed-related positioning.

Looking at the price, Ethereum recently faced a price rejection at the $4,100 resistance and is now approaching the $3,800 support zone, according to Ted. A successful retest could trigger a bounce, but a breakdown risks further bearish continuation toward lower levels.

Source: X

As of October 21, data from CoinMarketCap shows ETH trading at $3,873.27, down 0.56% in the last hour, 4.28% daily, and 3.03% weekly. This continued weakness underscores market indecision despite significant whale-led accumulation.