Ethereum Whales Bail as ETH Approaches Cycle Peak—Here’s Where the Smart Money’s Headed

Whale wallets are dumping ETH at levels last seen before major corrections—are retail traders about to be left holding the bag again?

Key moves you need to know:

- Massive sell orders hitting exchanges as ETH flirts with all-time highs

- On-chain data shows accumulation patterns mirroring previous cycle tops

- Derivatives markets flashing warning signs despite bullish price action

The real question isn't whether whales are exiting—it's whether they're simply rotating into the next big play while Wall Street analysts still can't tell a smart contract from a Starbucks receipt.

Ethereum has seen a lot of action recently, with big traders and whales making moves that could affect prices and overall sentiment. Changes in ETH supply and large positions are catching the attention of investors and analysts, which suggests that the market might be shifting.

Here’s what’s going on.

Trader Returns with $65M ETH Long After Major Exit

Data from Lookonchain shows that whale address 0x89Da recently closed a massive long position of 21,683 ETH, around $93 million, taking a realized loss of roughly $6.6 million. 

The whale then fully withdrew from Hyperliquid, pulling out 9.6 million USDC. Moves like this often signal growing caution among Leveraged traders.

Back at the tables already—gamblers never quit.

Whale 0x89Da is back with 9.6M $USDC and opened a long position of 15,353 $ETH($65.6M) again.https://t.co/pJkXaSdZif pic.twitter.com/SIlrhs7UIH

But in a quick turnaround, the same whale returned just an hour later. Using the same 9.6 million USDC, he opened a fresh 15,353 ETH long position worth $65.6 million. The comeback suggests renewed confidence and a willingness to take risks again, keeping ethereum traders on edge.

Whales Buy Ethereum Amid Market Dip

During the recent dip, Ethereum saw big whale activity. One OTC whale spent 83.96M USDC to buy 10,000 ETH and 350 BTC.

Meanwhile, another trader turned just $125K into $29.6 million over four months by compounding gains in ETH. He built a massive 66,749 ETH position worth $303 million. The trader has now closed all positions, locking in $6.86 million profit, leaving $6.99 million in equity, which is a 55x gain from the original deposit.

Ethereum Supply Hits Nine-Year Low

Ethereum supply is dwindling! 

Recent data from Glassnode shows that Ethereum’s supply on exchanges has dropped to a, the lowest since July 2016. With only 18.5M ETH left on exchanges, strong buying from ETFs and treasury companies could trigger a “supply squeeze.” As trader Merlijn The Trader put it, “When scarcity meets demand, price doesn’t go sideways.”

$ETH EXCHANGE RESERVES JUST HIT RECORD LOWS.

Only 18.5M Ethereum left on exchanges.

ETFs are buying. Institutions are stacking.
When scarcity meets demand, price doesn’t go sideways.

SUPPLY SQUEEZE INCOMING. pic.twitter.com/HE3pif5GiG

Key Ethereum Levels to Watch 

Despite bullish whale action and shrinking supply, Ethereum has pulled back nearly 5% to around $4,270 amid global economic pressures, including the ongoing Russia-Ukraine conflict that has fueled uncertainty in the market. Besides, large liquidations are also adding to the downturn.

The $4,000 level is now a critical support, and dropping below it could trigger over $1 billion in liquidations. In the last 24 hours, ETH has led the sell-off with over $200 million wiped out.

Analysts warn ETH could slide to $3,200–$3,600 if selling continues, risking a wider crypto market crash.