Ethereum Major Players Remain Split: Predictions for ETH Investers' Future
In the bustling world of cryptocurrency, May 2025 marked a pivotal moment for Ethereum (ETH) as whale activity took a dramatic turn. These megainvestors, famously known as whales, exhibited contrasting behaviors, creating a Oliver Twist-like scenario - some asking for more while others seeking to offload their holdings.
This toss-up by Ethereum whales comes with its own set of challenges and benefits for investors.
ETH Whales: Swimming Both Ways
On one side of the coin, some Ethereum whales are Exhibit A in the art of hoarding. One of these big fish made a splash by snatching up 3,029.6 ETH, worth a cool $5.74 million, only to find itself out of pocket by a hefty $142,000 due to a price drop to $1,842 per ETH. But this links back to a broader trend - Lookonchain reported that numerous whales scooped up thousands of ETH within just two hours. This implies that a handful of these whales remain bullish about ETH's potential, despite the short-term volatility that's become a constant companion in this wild crypto ride.
On the flip side, a significant amount of selling pressure from Ethereum whales can be felt. For instance, OnchainLens reported that a whale deposited 2,680 ETH on Kraken, netting a loss of around $255,000. But it didn't stop there: analysts detected another whale moving 3,000 ETH to Kraken in the blink of an eye, signaling a strong intention to sell. And a whale who once proudly displayed 76,000 ETH (acquired during the 2015 ICO) suddenly parted ways with 6,000 ETH, potentially banking a whopping $10.92 million.
Moreover, one insightful whale increased its short position by borrowing an additional 4,000 ETH, pushing its total short position to 10,000 ETH, equivalent to approximately $18.4 million. This move, reminiscent of a chess grandmaster preparing a counterattack, suggests expectations of a near-term price drop, potentially intensifying the downward pressure if the market's sentiment turns sour.
This seesawing whale activity lays bare a clear divide in Ethereum whale strategies, with accumulation and selling putting immense pressure on ETH's price.
The Market's Morale and Retail Investors' Sentiment
The whales' dancing to their own tune coincides with a crypto market that's swaying to the rhythm of various factors. According to BeInCrypto, ETH nabbed a 10% gain in a week, although it dipped slightly in the last 24 hours, lingering around $1,842 - a noticeable decrease from its March 2025 high of $2,500.
Despite this, the market's mood seems to be lifting. Ethereum investment products attracted $183m inflows the previous week, putting a halt to 8 weeks of outflows. The Ethereum spot ETF, too, saw a net inflow of $6.4932 million the day before. This suggests a consistent institutional interest, even as whales engage in short-term selling.
However, the whale's massive 10,000 ETH short position could intensify negative expectations, making it even more likely for the downward force to gain steam if the market's sentiment takes a downturn. In the meantime, retail investors seem to be hemmed in by the uncertainty, with ETH trading volume on exchanges dipping 10% over the past 24 hours.
Risks and Rewards
This games of whale-chase places investors smack-dab in the middle of a crossroads. Risks include the selling pressure from whales (especially the substantial short position), which could potentially plunge ETH's price in the short term, escalated by the market's overbought conditions.
On the flip side, opportunities flourish in the face of whale accumulation. The fact that these whales are amassing thousands of ETH testifies to their long-term confidence in Ethereum, particularly as it keeps its throne in the DeFi sector (possessing a whopping $52 billion in TVL in May 2025, according to DefiLlama).
Analyst Merlijn predicts that Ethereum may revisit the explosive growth seen in Bitcoin in 2020, if history repeats itself.
However, Ethereum may face stiff competition from Solana, which is gaining popularity owing to better startup support and a user-friendly platform.
In light of this tumultuous dance of risks and rewards, investors should tread cautiously, keeping a close eye on whale activities and technical indicators to navigate correction risks.
In the words of the wise and ever-timeless Frodo Baggins, "It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to." So, invest wisely... or run the risk of being swept off your feet.
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Sources:[1] DefiLlama, [2] BeInCrypto, [3] DeFiPulse, [4] Glassnode, [5] CoinMarketCap.
- Despite the whale's short position in Ethereum, institutional interest remains consistent, as evidenced by the Ethereum investment products attracting $183 million in inflows and an Ethereum spot ETF net inflow of $6.4932 million.
- Analyst Merlijn predicts that Ethereum may revisit the explosive growth seen in Bitcoin in 2020, if history repeats itself.
- On one side of the coin, some Ethereum whales are accumulating ETH, with one whale acquiring 3,029.6 ETH (worth $5.74 million) and another increasing its short position by borrowing an additional 4,000 ETH, pushing its total short position to 10,000 ETH (approximately $18.4 million).
- Lookonchain reported that numerous whales scooped up thousands of ETH within just two hours, suggesting that a handful of these whales remain bullish about ETH's potential, despite short-term volatility.
- OnchainLens reported that a whale deposited 2,680 ETH on Kraken, netting a loss of around $255,000, and another whale moved 3,000 ETH to Kraken in a blink of an eye, signaling a strong intention to sell.
- The Ethereum whales' activities, whether accumulation or selling, put immense pressure on ETH's price, highlighting a clear divide in Ethereum whale strategies.
- With the Ethereum market swaying to various factors and the whales' short position creating a negative outlook, investors should tread cautiously, keeping a close eye on whale activities and technical indicators to navigate correction risks.
- The whale's massive 10,000 ETH short position could intensify negative expectations and further escalate the downward pressure if the market's sentiment takes a downturn.
- Solana is gaining popularity, offering better startup support and a user-friendly platform, potentially posing stiff competition for Ethereum in the DeFi sector, where Ethereum currently possesses a total value locked (TVL) of $52 billion (according to DefiLlama).
