Ethereum whales, investors who control significant quantities of the cryptocurrency, have sharply cut their holdings amid a market slowdown. Large holders with between 1,000 and 10,000 ETH have reduced their accumulated positions by nearly a quarter, revealing a shift away from the steady accumulation seen just months earlier.
Data shared by market analyst Ali Charts highlights that this group boosted their portfolios from approximately 13 million ETH to nearly 16 million ETH in the first half of last year. However, since October, the trend reversed, with their holdings shrinking back down to around 12.5 million ETH. This marks an estimated 21.5% decline and suggests considerable profit-taking or risk aversion in response to Ethereum’s faltering price movement below $2,300.
The reduction in whale holdings points to a potential supply overhang that could weigh on price recovery. Ali Charts indicates that pushing Ethereum towards the $3,000 target now hinges on renewed buying interest from institutions or retail investors capable of absorbing this large volume of ETH being offloaded by whales. Notably, these high-net-worth investors had recently increased purchases, scooping up over 140,000 ETH worth roughly $320 million during a brief buying spree, signaling a previous optimism for upward momentum.
Despite the price volatility, Ethereum’s ecosystem is seeing growing institutional involvement, particularly through tokenized treasuries on its blockchain. The network surpassed $8 billion in tokenized US Treasury assets, a sign of expanding adoption of blockchain-based financial instruments. This trend underlines Ethereum’s evolving role as a platform bridging traditional finance and decentralized technology.