Key Takeaways
Ethereum whales offloaded $1.8 billion, sparking concerns over liquidity and stability. Spot activity heated, while shorts lost $23 million to liquidations.
Ethereum’s [ETH] market has come under notable pressure as whales offloaded more than 430,000 ETH, worth $1.8 billion, over the past two weeks.
This selling pressure reduced whale balances to their lowest levels in weeks, raising concerns about market resilience.
Historically, such exits often preceded corrections as liquidity thinned. Yet, smaller holders remained active, offering a cushion against deeper declines.
Naturally, the balance of power between whales and retail investors now looks pivotal.
Why is Spot trading activity heating up?
CryptoQuant’s Spot Volume Bubble Map showed Ethereum’s market activity entering a “heating” phase, with larger trades concentrated across exchanges.
This indicated heightened interest, but also growing volatility risks. Increased Spot Volume often signals intensified battles between buyers and sellers, amplifying short-term swings.
Still, such activity can bolster liquidity and soften abrupt shocks. The crucial question is whether this activity reflects accumulation or further distribution by whales.
Source: CryptoQuant
What does persistent sell-side dominance reveal?
The Spot Taker CVD, measured over a 90-day period, revealed a clear sell-side dominance in Ethereum’s order flows.
Aggressive sellers outweighed market buy demand, reinforcing bearish pressure from whale exits.
However, sell-side strength does not always equate to sustained downturns, as sharp reversals can emerge once selling becomes exhausted.
Thus, while bears currently dictate momentum, the key question is whether buyers can absorb this pressure and reclaim short-term market control.
Source: CryptoQuant
How risky is Ethereum’s leveraged environment now?
Liquidation data underscored the fragility of leveraged positions in Ethereum markets. At press time, shorts suffered $23 million in liquidations compared to $2.4 million for longs.
These losses showed how overextended bearish bets backfired as ETH steadied near $4,472.
Even so, repeated liquidations on both sides in recent weeks highlighted extreme market sensitivity to swings.
Therefore, traders face mounting risk as whale flows and leverage collide, magnifying volatility with every sharp move.
Source: CoinGlass
However, despite these challenges, liquidation trends reveal that short-sellers remain vulnerable.
While downside risks remain elevated, Ethereum may still find stability if retail demand and leveraged positioning continue to counterbalance whale exits.
Next: Bitcoin, Ethereum ETFs face $291 mln in outflows: Is a market shift coming?
