Over the past weekend, on-chain data revealed a significant surge in whale sell-offs, with millions of dollars worth of altcoins, including Ethereum and popular altcoins like PEPE, HYPE, LINK, and SOL, being sold or transferred to centralized exchanges.
These actions have sparked concerns among investors about potential market volatility or profit-taking by large holders. The movement of such large quantities of crypto assets raises crucial questions about the future direction of the market, especially for Ethereum and other major altcoins.
Ethereum, the second-largest cryptocurrency by market capitalization, was one of the most heavily affected by the weekend’s whale activity. A prominent ICO-era Ethereum whale, holding a staggering 1 million ETH since the project’s initial offering, made significant moves that caught the market’s attention. This particular wallet, known for its long-term holding strategy, sold off 991.67 ETH, valued at about $2.51 million at current market prices.
Since May 26, this whale has liquidated 9,845.96 ETH, which translates to $25.23 million at today’s price. Given that this wallet acquired its ETH for only $0.31 per coin, the whale’s profit from these sales is substantial, highlighting the success of a slow-selling strategy.
Interestingly, the whale appears to be pacing its sales, offloading about 1,000 ETH per week. If this rate continues, it could extend over several months or even years, signaling a controlled, strategic exit rather than a panic-driven sell-off. Despite this, Ethereum’s price has been under pressure, with many market participants speculating that these significant sell-offs may be part of a broader market correction or profit-taking strategy.
In addition to this whale, another dormant Ethereum wallet (inactive for over four years) transferred 4,949.63 ETH to a centralized exchange (CEX), indicating possible sell intentions. Another wallet withdrew 10,708 ETH from Lido, sending the funds to OKX shortly afterward. These actions are viewed by analysts as indicators of growing market volatility and may point to short-term bearish sentiment surrounding Ethereum.
However, not all whale movements were sell-offs. One whale spent 467.58 ETH (roughly $1.18 million) to increase their holdings in KTA, suggesting that some whales are re-allocating their funds into other promising projects rather than liquidating assets like ETH. Despite these short-term bearish signals, many analysts remain optimistic about Ethereum’s long-term potential. Ted, a crypto analyst, commented, “Ethereum is still consolidating after a bullish May. With ETF inflows rising and network activity increasing, I believe ETH will hit $3,000 this month and could reach $4,000 in Q3 2025.”
Sell-Offs of Other Major Altcoins by Whales
Beyond Ethereum, other large-cap altcoins have also seen significant whale activity. One prominent example is HYPE, the token from the Hyperliquid project. One whale capitalized on the HYPE token’s price surge, making a profit of over $38 million after selling 131,137 HYPE tokens.
In addition, the PEPE token, which has seen popularity due to its meme status, also experienced substantial whale sell-offs. A whale moved 1 trillion PEPE tokens, valued at $11.65 million, to Binance, marking a significant liquidation event. Similarly, four addresses associated with the same whale deposited 356,000 LINK (Chainlink tokens) to Binance, with an estimated ROI of 97.3%.
Another major whale moved $7.52 million worth of SOL (Solana) from staking, transferring the majority of the funds to Binance. These movements underscore the trend of large holders taking profits after altcoin rallies, which could indicate that whales are locking in gains in anticipation of a potential market correction.
While these sell-offs may appear to be signs of a market top, they also suggest that whales are responding to increased volatility and uncertainty surrounding the broader crypto market. In previous instances, similar sell-offs by whales have led to sharp market corrections, but also to buying opportunities at lower support levels, depending on the emergence of new demand.
Whale Activity and Market Timing
Whale transactions are closely watched by analysts due to their potential influence on market liquidity and price movements. Sell-offs of this magnitude are often viewed as indicators of market tops, where large investors take profits after a significant price surge.
However, it’s essential to recognize that whale activity can also reflect broader market sentiment and macroeconomic factors affecting the crypto industry.
In the current market cycle, the sell-offs by these major wallets could be attributed to a combination of factors, including profit-taking, market uncertainty, and geopolitical risks.
Over the weekend, news about potential Bitcoin ETF delays, as well as concerns about regulatory actions and global financial instability, may have contributed to the bearish sentiment that triggered these large sell-offs.
Short-Term Bearish Sentiment or Opportunity?
The ongoing sell-off wave presents a critical opportunity for investors to monitor on-chain metrics and trading volumes. If the whale activity continues, the market may face short-term downward pressure. However, it is equally possible that new demand will emerge, driving the market higher. The behavior of retail investors in response to these whale movements will likely dictate the next phase of the market cycle.
For now, the market remains in a delicate state, with Ethereum and other major altcoins facing increased volatility. While the market may experience temporary setbacks, the long-term outlook for many of these assets remains strong, particularly for Bitcoin and Ethereum. As always, investors should exercise caution and employ sound risk management strategies to navigate the market’s complex dynamics.
The recent wave of whale sell-offs serves as a reminder of the highly speculative nature of the cryptocurrency market. These moves - especially the liquidation of Ethereum and altcoins like PEPE, HYPE, LINK, and SOL - are often seen as indicators of market tops, but they also reflect the cyclical nature of crypto markets. While whale sell-offs can create short-term volatility, they often present buying opportunities when new demand enters the market.