Ethereum Whales Brace for Deeper Pullback—Data Spells Trouble

Large holders dump ETH as market sentiment sours—are they seeing something retail traders aren’t? On-chain metrics flash warning signs, but the ’smart money’ always has an exit plan (and a yacht).

ETH: Institutional flows grow, but retail still holds ground

Transaction activity paints a mixed yet revealing picture of market behavior. Transfers above $1 million have surged by 64.24%, while those over $10 million spiked by an astounding 185.71%, underlining the growing influence of large entities. 

These increases reflect whales moving funds more aggressively, likely preparing for short-term volatility or portfolio adjustments. However, smaller transaction bands—particularly between $1 and $100—also recorded notable growth of +6.71% and +4.82%, respectively. 

Therefore, while whale activity increases in intensity, smaller holders continue engaging with the network, signaling that Ethereum’s foundational usage remains strong despite heightened sell-side pressure.

Source: IntoTheBlock

Wallet growth reveals strong user-level confidence

Ethereum’s network-level indicators remain robust, offering a fundamental counterbalance to whale-led concerns. Over the past week, new address creation ROSE by 13.93%, suggesting heightened onboarding and fresh user engagement. 

Meanwhile, active addresses increased by 3.09%, showing that existing holders continue to interact with the network. Furthermore, zero-balance addresses also climbed by 8.82%, a sign of previously inactive wallets returning to activity. 

These increases indicate that, despite short-term price volatility and whale movements, organic demand is not fading. On the contrary, Ethereum continues to attract user interest at a pace that may offer support against sharper downturns.

Source: IntoTheBlock

Are overleveraged longs setting up a squeeze?

Liquidation data reveals rising risk for bullish traders. On the 22nd of April, long liquidations totaled $25.71 million, while short-side liquidations reached only $5.17 million.

This wide imbalance shows that traders remain overly optimistic, potentially ignoring growing bearish sentiment fueled by whale exits and derivatives volatility. 

Source: Coinglass

Moreover, Ethereum’s trading price stood at $1,584.44, down 3.71% at the time of writing, suggesting that any further drop could rapidly unwind Leveraged long positions. 

Additionally, derivatives volume soared by 49.48% to $48.16B, and options volume rose 59.34%, yet total open interest slipped 2.87%, highlighting uncertainty and fragmented conviction across markets.

Can ETH stay afloat, or is deeper pain ahead?

Ethereum now faces a fork in the road. On one hand, retail activity and network engagement show resilience, hinting at continued belief in the asset’s long-term value. On the other hand, coordinated whale exits and increased short-side leverage indicate bearish expectations among influential players. 

Therefore, unless new demand steps in to neutralize this pressure, Ethereum may struggle to maintain its current price zone and could revisit lower levels before stability returns.