The Ethereum market has seen a significant shift in trading behavior over the past month, as large Ethereum holders - often referred to as “whales” and “sharks” - have been accumulating Ether at an accelerated pace, while retail investors have been cashing out and booking profits.
This trend, highlighted by recent data from crypto analytics firm Santiment, shows that while retail traders may be pulling back, institutional and large-scale investors are continuing to show confidence in Ethereum's long-term prospects.
Santiment's analysis reveals that wallets holding between 1,000 and 100,000 ETH - classified as whales and sharks - have added a total of 1.49 million ETH over the last 30 days, worth approximately $3.79 billion. This increase of 3.72% in their collective holdings signals that large investors are taking advantage of Ethereum's relatively stable price action in recent weeks, which has been characterized by sideways movement.
While retail traders have been taking profits amid the recent price fluctuations, these significant holders are doubling down on their Ethereum positions, which now account for nearly 27% of the total circulating supply of ETH - around 41.61 million ETH, according to Santiment’s data.
This growing concentration of ETH in the hands of large investors could have long-term implications for the market, suggesting that institutional players see continued value in Ethereum despite the more subdued price movement.
Retail Investors Take Profits Amid Sideways Market
The decision of retail investors to cash out in the face of limited price movement is not uncommon. Retail traders, typically more sensitive to price volatility and market sentiment, have been taking profits as ETH prices climbed in the earlier months of 2025, though it has since plateaued. According to CoinGecko, Ethereum has seen a modest 1.8% increase over the past 14 days and a 3.8% rise over the last 30 days, with current prices sitting around $2,575. Despite these gains, Ethereum remains nearly 48% off its all-time high of $4,878, a level it reached in late 2021.
The broader market sentiment has been somewhat cautious as investors await further developments. The lack of substantial price movement, along with ongoing macroeconomic concerns and regulatory scrutiny, has led many retail investors to lock in profits rather than hold through potential uncertainty.
While retail investors may be stepping back, Ethereum’s decentralized finance (DeFi) ecosystem continues to thrive, offering new opportunities for large investors. Santiment pointed out that whale activity has been particularly strong in Ethereum-based protocols, with platforms like Ethereum Name Service seeing a 313.5% increase in whale transaction activity in early July.
In addition to ENS, other DeFi protocols, such as Ethereum lending platforms, saw significant interest, with whale transactions increasing by 203.8%. Furthermore, Layer-2 networks like Arbitrum and Optimism, which are built on Ethereum’s blockchain, recorded triple-digit growth in USDC transfers. These developments highlight how Ethereum’s DeFi ecosystem, along with Layer-2 scalability, is becoming an increasingly attractive space for institutional and high-net-worth individuals looking for opportunities beyond traditional financial markets.
Spot Ethereum ETF Market Sees Institutional Confidence, but Short-Term Volatility Persists
The growing confidence in Ethereum from institutional investors is also visible in the spot Ethereum ETF market. After a 19-day streak of net inflows into U.S.-based Ethereum ETFs, totaling $1.37 billion, there was a brief setback on June 7 when a net outflow of $2.1 million was recorded. Despite the outflow, this streak of inflows marked a milestone for Ethereum in traditional financial markets, especially given that the ETFs are managed by major financial institutions like BlackRock.
This trend points to the continued institutional interest in Ethereum as a long-term asset. However, the recent brief setback in inflows highlights the volatility in the market and the challenges of sustaining momentum in the face of broader macroeconomic uncertainty. Still, the long-term outlook remains positive, and analysts expect more institutional capital to flow into Ethereum in the coming months, particularly as Ethereum-based financial products gain traction in mainstream markets.
Meanwhile, Ethereum's role in corporate treasury management has been gaining attention as companies seek to capitalize on Ethereum’s potential. A notable example is SharpLink Gaming, a sports betting platform that saw its shares drop by 73% in after-hours trading on June 8. The plunge occurred after the company filed to register a large volume of shares for potential resale, indicating an attempt to cash in on its Ethereum treasury holdings.
SharpLink Gaming had previously announced plans to purchase significant amounts of Ethereum with proceeds from a $1 billion share sale. While the company’s move was initially seen as a vote of confidence in Ethereum, market reactions were mixed, with investors questioning the firm’s strategy and its ability to execute the plan. Despite the volatility surrounding SharpLink’s stock, this move highlights the growing interest in Ethereum among corporations looking to build their reserves with digital assets.
Solana's Impact and Competition
While Ethereum continues to dominate, competition from other blockchain networks like Solana has been intensifying. Solana, which boasts a high throughput and low transaction costs, has been gaining market share, particularly in the DeFi space. Its rise is in contrast to Ethereum’s ongoing battle with scalability and high gas fees.
Ethereum’s scalability solutions, such as the rollout of Ethereum 2.0 and the use of Layer-2 networks, are helping to address these challenges. However, Solana’s ability to process thousands of transactions per second has made it an attractive alternative for developers and users alike.
Despite this, Ethereum’s strong developer ecosystem, leading DeFi applications, and the launch of Ethereum-based products like ETFs continue to give it a significant edge over competitors. The integration of stablecoins and major institutions within the Ethereum network is strengthening its position as the backbone of the decentralized finance world.
Ethereum’s price action in the past month reflects a mixed sentiment, with whales accumulating significant amounts of ETH while retail investors cash out amid a period of stagnation. Despite the short-term volatility, Ethereum’s DeFi ecosystem and institutional adoption continue to drive long-term value. The growing presence of Ethereum-based financial products, along with the increased integration of stablecoins and Layer-2 solutions, suggests that Ethereum’s role in the broader crypto ecosystem is far from over.
Whale interest in Ethereum remains robust, and with the continued rollout of Ethereum 2.0 and the growth of its Layer-2 networks, the outlook for the network remains promising. As the broader market continues to evolve, Ethereum’s adaptability and dominance in the DeFi space will likely ensure its continued relevance in the crypto world.