In early May 2025, the Ethereum (ETH) market witnessed opposing actions from large investors known as whales.
These opposing behaviors of whales create both risks and opportunities for investors.
Contrasting Actions of Large Ethereum Holders
On one hand, several Ethereum whales are accumulating ETH in large amounts. One whale purchased 3,029.6 ETH for $5.74 million. However, this whale is currently facing temporary losses of $142,000 as the price has decreased to $1,842 per ETH.
On May 1, 2025, Lookonchain reported that several whale addresses accumulated thousands of ETH within two hours. These actions indicate that some large investors remain confident in the long-term potential of ETH, despite short-term price volatility.
On the other hand, selling pressure from Ethereum whales is significant. On May 2, 2025, OnchainLens reported that one whale deposited 2,680 ETH on Kraken, incurring approximate losses of around $255,000.
Meanwhile, analysts found that another whale transferred 3,000 ETH to Kraken within 10 minutes on the same day, indicating a strong intent to sell. It is important to note that the whale who received 76,000 ETH during the ICO in 2015 sold 6,000 ETH, potentially securing a profit of $10.92 million.
Additionally, on May 1, 2025, on-chain data showed that a whale increased its short position by borrowing an additional 4,000 ETH. This whale raised its total short position to 10,000 ETH, equivalent to approximately $18.4 million.
These actions highlight a clear divide in the strategies of Ethereum whales, where accumulation and selling create significant pressure on the price of ETH.
Market Context and Investor Sentiment
Volatility in whale behavior coincides with the cryptocurrency market, which is affected by various factors. According to BeInCrypto, the price of ETH rose by 10% over the week but slightly decreased in the last 24 hours. It fluctuates around $1,842 — a notable decline from the March 2025 peak of $2,500. Despite this, market sentiment shows some positive signs. Investment products in Ethereum also saw an inflow of $183 million last week after an 8-week outflow period. The Ethereum spot ETF had a total net inflow of $6.4932 million yesterday. This reflects sustained long-term interest from institutions, even amid short-term selling pressure from whales.
Moreover, a large short position of 10,000 ETH by a whale indicates expectations of a short-term price decline, which could amplify downward pressure if market sentiment turns negative.
Meanwhile, retail investors seem to be affected by this uncertainty, as trading volume for ETH on exchanges decreased by 10% in the last 24 hours.
Risks and Opportunities
The opposing actions of whales put investors at a crossroads of risks and opportunities. On the risk side, selling pressure from whales, particularly significant short positions, could lower the price of ETH in the short term, especially considering the overbought market. However, opportunities also exist. The accumulation of thousands of ETH by whales reflects long-term confidence in Ethereum's potential, especially as the network continues to lead in DeFi, with a total locked value (TVL) of $52 billion in May 2025, according to DefiLlama.
Analyst Merlin indicated that the current price structure of Ethereum resembles that of Bitcoin in 2020. Accordingly, he believes that Ethereum will witness strong growth if history repeats itself. Ethereum risks losing developers to Solana, which is gaining momentum due to better support for startups and an optimized user experience.
However, technical upgrades such as Ethereum 2.0 and the development of layer-2 solutions like Arbitrum and Optimism also support the long-term growth of ETH.
Investors may view the current lower price levels as an opportunity for accumulation; however, they should closely monitor whale activity and technical indicators to mitigate correction risks.#Write2Earn #BinanceSquare #Squar2earn #crypto #Arbitrum $ETH