Ethereum large-scale holders sold some of their tokens in January and February, in line with the overall market decline. Small wallets increased, possibly to lock more ETH for staking. Ethereum holders with 1,000 or more tokens have distributed up to 1.5% of their holdings at the beginning of 2026. Those whale wallets are showing a shift in the narrative of long-term ETH reserves. The whale selling matches similar outflows from BTC wallets, causing a general slide in crypto prices. The selling coincided with a loss of the $3,000 level, as ETH sank to $1,949.35. Holding ETH is still key for trading, staking, and DeFi lending. However, as prices unwind, whales also trade actively to achieve a lower average price. Are Ethereum whale wallets underwater? The recent price downturn for ETH sparks fears of a whale capitulation. ETH whales are more likely to trade actively in comparison to BTC holders. The current ETH price is now below the average realized price of accumulation addresses, meaning some of the recent buyers may be holding unrealized losses, based on CryptoQuant data . ETH accumulation continues, but some whales are underwater as ETH dipped under $2,000. | Source: CryptoQuant . Historically, the current price range for ETH has been attractive for ongoing accumulation. At the same time, some of the ETH supply has shifted to small-scale wallets. Holders with under 1 ETH are storing 2.3% of the total supply, reaching a record share of holdings. The biggest holding factor for Ethereum is the Beacon Chain smart contract. Over 30% of ETH is staked as a way to secure reliable passive income. While staked ETH will not sell immediately, due to the exit queue mechanism, the rewards may be sold or used in another way to gain liquidity. ETH accumulation as a whole continues to rise exponentially, to over 27M ETH. Unlike BTC, ETH offers ways to achieve passive income even during bear markets, either through staking or DeFi. ETH open interest falls to a six-month low ETH trading activity slowed down, with open interest sliding to a six-month low of $10.19B. Futures activity is down around 60% since October 10, with no signs of returning leverage. While DeFi and on-chain activity remain robust, in the short term, leverage has left the system, leaving ETH to coast based on whale demand. With no directional moves, the whale spot selling may put more pressure on the price. The ETH fear and greed index fell to 30 points, still indicating fear, with only a short-term attempt at recovery. While ETH is seen as somewhat oversold and a good entry point for whales, the lack of a clear directional move on derivative markets means price growth may not reflect the actual spot demand. The Ethereum network remains slightly inflationary, with 0.77% annualized growth of the supply. Nearly 18,000 ETH enter the market each week, further challenging accumulating wallets. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
