Ethereum Selling Pressure Mounts as Arthur Hayes Dumps $2M Into DeFi Tokens

Ethereum faces a wave of selling pressure as a major player pivots capital. BitMEX co-founder Arthur Hayes just shifted a cool $2 million out of ETH and into a basket of DeFi tokens, signaling a strategic rotation that's got the market talking.

The Whale Move

This isn't pocket change. A $2 million reallocation from a figure like Hayes acts as a high-conviction trade, a public bet that near-term alpha might lie beyond the smart contract pioneer. It's a move that often precedes copycat trading from smaller portfolios watching the big wallets.

DeFi's Allure

The capital flowed into decentralized finance tokens—the building blocks of lending, trading, and yield generation on-chain. While Ethereum remains their primary home, this suggests a hunt for higher growth potential within its ecosystem, a classic 'pick-and-shovel' play during a build-out phase.

Reading the Pressure

Significant selling from influential holders can create overhead resistance, slowing momentum. It forces the market to find new buyers at these levels. However, a rotation within the crypto complex differs from a flight to fiat—it keeps capital in the digital arena, just shifting the chairs.

The Bigger Picture

One trader's exit is another's entry. While Hayes's move applies short-term pressure, it also highlights the deep liquidity and mature capital flows within crypto. Money isn't leaving; it's working harder elsewhere—a sign of a maturing market, not a failing one. After all, in traditional finance, they call this 'sector rotation' and charge you a 2% management fee for the privilege.

Watch the flow, not just the price. This capital shift underscores the dynamic, competitive landscape of Web3, where even foundational assets must continually prove their worth to the smart money.

Ethereum Faces On-Chain Selling as ETF Outflows Accelerate

On-chain data supports his statement. On December 19, 508.647 ETH was sold by Hayes to Galaxy Digital. At the time, it was a deal worth some $1.5 million. After few days, he transferred another 680 ETH, which is about $2 million. The second transfer was sold and rotated capital, according to Lookonchain.

Arthur Hayes(@CryptoHayes) just transferred another 680 $ETH($2.03M) to sell and rotate into high-quality DFi tokens.https://t.co/jifQkMFtiO pic.twitter.com/xYIW9o7xSK

Seven consecutive days of net outflows have been registered in Spot Ethereum exchange-traded funds. CryptoQuant data shows that there were more than $600 million in net outflows this week. It is among the largest withdrawals of Ethereum ETFs that took place in a week.

The biggest such redemptions were in ETHA of BlackRock. The fund sold out around $467 million in the period. The amount of the outflows of Fidelity FETH was about $35 million. Grayscale ETHE made nearly $49 million in withdrawals. Put together, the facts show that institutional demand is declining.

Price Support at Risk as Hayes Increases DeFi Positions

Analyst Ted Pillows said that Ethereum has to maintain current positions. A decline below the $3,000 price level may lead to a fall to the $2,700 to $2,800 levels. Any change in position past $3,200 can change the mood. 

Lookonchain data also revealed that he recently purchased 1.22 million ENA. The acquisition validates the active rotation to DeFi. It is also a sign of willingness to accept increased volatility.

Arthur Hayes(@CryptoHayes) just bought 1.22M $ENA($257.5K) 30 mins ago.https://t.co/loeYKUb9rNhttps://t.co/3j5DkVtzD1 pic.twitter.com/ft4csng5e9

This plan isolates merchants. There is an opinion that the tokens of DeFi are usually effective in the periods of liquidity expansions. Others warn that the losses can increase very quickly in case the situation alters. Volatility is one of the key risks.

Hayes has not shifted his opinion about Ethereum even after the sales. He has mentioned it several times as crypto market infrastructure. His move is limited to a tactic and not an ideology.

As the short-term pressure is on the rise, long-term opinions are also polarized. Bitwise’s asset manager is hopeful that Ethereum will reach its new high in 2026.