Kraken Observes Ethereum Market Turbulence as Whales, Hackers, and Foundation Drive $500M ETH Sell-Off

Ethereum's market dynamics have undergone significant shifts as large-scale transactions involving whales, hackers, and the Ethereum Foundation wallets have resulted in a $500 million ETH sell-off. On-chain data highlights a surge in Ethereum transfers, with 4.6 million ETH moved, approaching July's monthly high of 5.2 million. Additionally, staking inflows have reached 247,900 ETH, the highest in a month, further reducing the available supply for trading. This activity underscores the volatile and evolving nature of Ethereum's market, with major players influencing price movements and liquidity. As of August 2025, these developments are closely monitored by exchanges like Kraken, reflecting the broader trends in cryptocurrency markets.

Ethereum Foundation, Whales, and Hackers Drive $500M ETH Sell-Off

Ethereum's market dynamics have shifted dramatically as whales, hackers, and the ethereum Foundation wallets moved over $500 million worth of ETH through large-scale sales and withdrawals. On-chain data reveals a surge in Ethereum transfers, reaching 4.6 million ETH—nearing July's monthly high of 5.2 million. Simultaneously, staking inflows hit 247,900 ETH, the highest in a month, effectively locking more supply out of trading circulation.

Newly created wallets have withdrawn massive sums from exchanges, with one address pulling 17,591 ETH ($81.62 million) from Kraken in just two hours. Over three days, two wallets removed 71,025 ETH ($330 million), including a single address that accumulated 53,434 ETH ($242.34 million) during market dips. Meanwhile, profit-taking has intensified. A hacker-linked wallet sold 4,958 ETH for $22.13 million, securing $9.75 million in gains, while another whale unloaded 20,600 ETH ($96.55 million) for a $26 million profit after nine months of holding.

Ether Retreat Exposes Retail-Institutional Divide as Whales Accumulate

Ethereum's pullback from near-record highs has laid bare a growing divergence between retail panic and institutional accumulation. The second-largest cryptocurrency retreated to $4,448 after brushing against its $4,878 peak, with on-chain data revealing starkly contrasting behaviors across market participants.

The broader crypto market cooled alongside ETH, with Bitcoin slipping 5% from its $124,400 all-time high to $117,000. Total market capitalization dipped below $4 trillion as 24-hour trading volume contracted by 32% to $180 billion.

Beneath the surface, whale movements tell a more nuanced story. A dormant Ethereum ICO participant liquidated 334.7 ETH worth $1.48 million - representing a 14,200x return on a $104 initial investment. Meanwhile, institutional players like Bitmine aggressively accumulated 106,485 ETH ($470 million) in 24 hours, amassing a $5.8 billion treasury. Another unidentified buyer withdrew 92,899 ETH ($412 million) from Kraken across new wallets in just four days.