Ethereum Mid-Sized Whales Hit Peak Unrealized Gains: Profit-Taking Looms

Mid-tier Ethereum whales just hit their highest unrealized profit levels in history—sparking concerns about an impending sell-off.

The Whale Watch

These crypto heavyweights now sit on paper gains that could tempt even the most diamond-handed investors. When whales this size start moving, entire markets feel the ripple effects.

Profit-Taking Pressure Builds

Historical patterns suggest that when unrealized gains peak, selling pressure follows. Whales rarely leave that much money on the table for long—they typically convert paper profits into actual lambos.

Market Impact Potential

Any significant selling from this cohort could test Ethereum's recent resilience. Retail traders might want to buckle up—whale movements often create waves that capsize smaller boats.

Timing the Tide

Smart money watches whale wallets like hawks. The question isn't if they'll take profits, but when—and how much the market can absorb without crashing. Because nothing says 'financial innovation' like a handful of anonymous accounts potentially tanking a $400 billion asset class.

Ethereum Whales Signal Critical Stage

Ethereum has entered a pivotal phase as mid-sized whales are now sitting on significant unrealized profits. These paper gains have reached levels comparable to those seen at the November 2021 peak, when Ethereum touched its all-time high. The similarity in profit conditions has raised concerns among analysts, as such moments in previous cycles often preceded periods of profit-taking or heightened selling pressure.

Historically, when unrealized profits for mid-sized whales reached such elevated levels, markets tended to experience increased volatility. Some holders opted to lock in their gains, triggering a cascade of selling that weighed on prices. This behavior doesn’t guarantee an immediate correction, but it underscores the psychological pressure investors face when sitting on substantial profits. Market participants, especially larger holders, often influence broader sentiment and liquidity, creating Ripple effects across exchanges and trading desks.

At the same time, Ethereum remains fundamentally strong. Institutional inflows, network activity, and the broader Optimism in crypto markets could temper aggressive selling and extend the rally. Still, analysts caution that the balance between bullish momentum and profit-taking behavior will determine Ethereum’s trajectory.

The coming weeks are decisive. A successful push above resistance could reignite momentum and test new highs, while increased selling pressure may trigger a consolidation phase or sharper correction. Ethereum’s fate now hinges on whether whales choose to hold for higher valuations or realize gains at current levels.

Ethereum (ETH) is currently trading around $4,599, showing resilience above the $4,500 support level. The chart highlights a period of consolidation after ETH failed to sustain momentum above the $4,750 resistance zone, where selling pressure has repeatedly capped rallies. Despite this, the overall trend remains constructive, with ETH maintaining higher lows since early September.

The 50-day SMA (blue) is trending upward and sits close to $4,307, providing dynamic support that has cushioned recent pullbacks. Meanwhile, the 100-day SMA (green) at $3,614 and the 200-day SMA (red) at $2,846 reflect the broader bullish structure, suggesting that the market remains in a long-term uptrend. The moving averages are aligned in bullish order, further reinforcing positive momentum.

However, ETH is encountering strong resistance NEAR $4,750, which remains the key barrier before a potential retest of all-time highs. A decisive breakout above this level, accompanied by rising volumes, could open the path toward $5,000 and beyond. On the downside, a failure to hold $4,500 may trigger a correction toward $4,300 or even the $4,000 psychological support.

Featured image from Dall-E, chart from TradingView