$ETH In early May 2025, the Ethereum (ETH) market witnessed two opposing trends from whales, creating both risks and opportunities for investors.
1. Contrarian actions of ETH whales
✅ Strong accumulation:
A whale bought 3,029.6 ETH (5.74 million USD) despite incurring a loss of 142,000 USD due to the price drop to 1,842 USD/ETH.
On May 1st, many whale wallets collectively bought thousands of ETH within 2 hours (according to Lookonchain), showing confidence in long-term potential.
❌ Selling pressure:
On May 2nd, a whale deposited 2,680 ETH to Kraken, incurring a loss of 255,000 USD (OnchainLens).
On the same day, another wallet transferred 3,000 ETH to Kraken to sell.
Notably, a whale that participated in the 2015 ICO sold 6,000 ETH, making a profit of 10.92 million USD.
Another whale increased its short position to 10,000 ETH (~18.4 million USD), predicting a price drop.
2. Market context
📉 Price volatility:
ETH increased by 10% over the week but slightly decreased in the past 24 hours, around 1,842 USD (lower than the peak of 2,500 USD in March 2025).
Trading volume decreased by 10%, reflecting the hesitant sentiment of retail.
📈 Positive signals:
ETH investment products attracted 183 million USD in inflows last week.
Spot ETH ETF recorded 6.49 million USD in inflows (on May 2nd).
Ethereum's TVL reached 52 billion USD (DefiLlama), leading DeFi.
3. Risks & Opportunities
🔴 Risks:
Selling pressure from whales and large short positions could push prices down in the short term.
Competition from Solana (attracting developers due to optimized experience).
🟢 Opportunities:
The current price may be an accumulation point before ETH breaks out (similar to Bitcoin in 2020).
The Ethereum 2.0 upgrade and the development of Layer 2 (Arbitrum, Optimism) support long-term prospects.
4. Strategies for investors
On-chain monitoring: Balance between accumulation and liquidation by whales.
Risk management: Set stop-loss orders if trading short-term.
Long-term focus: Ethereum remains the leading platform for DeFi and NFTs.
"ETH is repeating the price structure of BTC in 2020. If history repeats, a strong rally could occur" - Merlijn, Analyst.