Since the onset of this year, Ethereum’s price has been on a downward spiral, with significant dips impacting major holders. The cryptocurrency market’s general slump has seen Ethereum plummet by over 30% in 2026, struggling to surpass the $2,000 threshold even amidst brief recovery attempts.
Are Institutional Holders Facing a Critical Crunch?
Ethereum’s recent valuation at $1,971 has posed substantial challenges for institutional investors, drawing it beneath the average purchase price for significant accounts and ETF investors. BitMine, a leading holder of Ethereum, has been heavily impacted, now facing unrevealed but substantial losses exceeding $7 billion due to Ethereum’s fall.
How Are Whales and ETF Investors Positioned?
On-chain data highlights that large investors, dubbed “whales,” have been accumulating Ethereum since June 2025 at prices above $2,000. However, the current valuation is dragging their acquisitions into a disadvantageous position. Bloomberg Intelligence’s James Seyffart remarked that ETF investors, who acquired Ethereum at an average cost of $3,500, are now grappling with losses as prices hover under this benchmark.
The latest slump mirrored the sizable declines seen last year, exceeding losses of 60%.
Comparatively, the setback is particularly notable when assessing Ethereum’s ETF performance against Bitcoin funds. The trading price of Ethereum remains unfavorably low, relative to the purchase cost for numerous ETF investors.
In the Face of Adversity, Are Whales Holding Their Ground?
Analyzing the situation, insights suggest that large institutional investors and whales remain resilient, opting not to sell despite the downturn. Instead, they find Ethereum’s current price levels suitable for further accumulation, anticipating future gains.
Whales continue to see an opportunity in current valuations, encouraging aggressive accumulation.
Ethereum is increasingly flowing out of exchanges, indicating a strategic move by institutions to long-term storage in secure cold wallets. Meanwhile, the flow into Ethereum ETFs has diminished below $12 billion from $15 billion, yet a bulk of investors persists in holding their positions.
Despite tougher setbacks compared to Bitcoin, ETF holders largely choose retention.
Recently, BitMine notably acquired another 40,000 Ethereum, bolstering their holdings to 2.97 million. This reflects their commitment to a long-term strategy, as 68.7% of their total assets are staked, showcasing confidence in Ethereum’s future potential. Major investors are favoring retention over withdrawal, demonstrating a steadfast belief in Ethereum’s recovery trajectory.
