In early May 2025, the Ethereum (ETH) market experienced conflicting movements by large investors, commonly referred to as whales.
These contrasting actions by whales present both risks and opportunities to investors.
One group of Ethereum whales has been accumulating substantial amounts of ETH. For instance, one whale bought 3,029.6 ETH worth $5.74 million, although currently faces a loss of $142,000 as the price dropped to $1,842 per ETH.
On May 1, 2025, Lookonchain reported that multiple whale addresses were gathering thousands of ETH within a short time frame, indicating confidence in ETH's long-term potential despite short-term price fluctuations.
Conversely, significant selling pressure from Ethereum whales was observed. On May 2, 2025, OnchainLens reported a whale deposited 2,680 ETH on Kraken, incurring a loss estimated at around $255,000. Another whale transferred 3,000 ETH to Kraken signaling an intent to sell.
A whale who acquired 76,000 ETH during the 2015 ICO sold 6,000 ETH, potentially making a profit of $10.92 million.
Moreover, on May 1, 2025, data revealed a whale increasing their short position by borrowing an additional 4,000 ETH, bringing their total short position to 10,000 ETH or approximately $18.4 million.
These actions demonstrate a clear difference in strategies among Ethereum whales, impacting ETH's price significantly.
The volatility in whale behavior coincides with a crypto market influenced by various factors. Although ETH's price has varied, market sentiment shows positive signs with institutional interest, despite the short-term selling pressure from whales.
The contrasting actions of whales present risks and opportunities for investors. While there is a potential for short-term price decline due to selling pressure from whales, accumulating lower-priced ETH may offer long-term benefits, considering Ethereum's strong position in DeFi and ongoing technical developments. Investors should keep a close eye on whale activities and technical indicators to manage potential risks effectively.