Institutions and OG whales are dumping on a large scale, how can ETH save you?

Close all positions, reduce holdings, and walk away with losses. Is ETH facing a “dumping wave”?

Written by: Fairy, ChainCatcher

Ethereum has not been doing well recently.

From the reallocation adjustments of multiple established crypto institutions to the long-term “sleeping” whales waking up and choosing to reduce their positions, the ETH market seems to be filled with a chill.

What is more concerning is that this phenomenon is not an isolated event: the on-chain holdings of some institutions’ ETH are nearing zero, spot ETF funds continue to flow out, and on-chain activity has also experienced a cliff-like decline… Do these signals indicate that the Ethereum ecosystem is undergoing a more profound transformation?

close all positions, reduce holdings, take a loss and leave: ETH facing a “dumping wave”?

Ethereum may quietly be facing a wave of “smart money” reduction. Several established institutions have recently shown unusual reallocation actions. Well-known crypto VCs like Galaxy Digital, Polychain Capital, B2C2, and Spartan Group have successively deposited thousands to tens of thousands of ETH into exchanges.

Long-dormant Ethereum whales are also gradually “reviving.” Some addresses have not moved for 3 years, or even as long as 10 years, but recently initiated transfers, sending large amounts of ETH to trading platforms. Some whales chose to exit at a loss, and some even directly closed all positions without hesitation.

The following is a set of data compiled by ChainCatcher, which statistics the amount of ETH deposited by some institutions and whales into exchanges recently (incomplete statistics):

By examining the remaining ETH balances of institutional on-chain addresses, it is evident that several mainstream VCs have relatively low on-chain ETH holdings. For example, institutions like Dragonfly, GSR, and Spartan Group currently hold only a few hundred ETH. More notably, some institutions are nearing a “close all positions” state, with their on-chain addresses holding as little as single-digit amounts of ETH.

The following is a statistical table of some institutional on-chain addresses’ ETH holdings compiled by ChainCatcher (Note: The data may have certain inaccuracies due to incomplete address collection or attribution determination, and is for reference only):

Although the on-chain holding data of VCs may have uncertainties, the on-chain transfers and dumping that actually occurred are too clear to ignore. Did ETH really disappoint them? Is this a strategic adjustment of positions, or a loosening of emotions and beliefs?

Let’s take a look at some reference data.

The network activity has sharply declined, and capital outflow has intensified.

According to data from The Block, since April 10, the number of new Ethereum addresses and active addresses has both plummeted, while the average transaction fee for Ethereum has also dropped from $0.86 to $0.63, indicating a sharp contraction in network activity.

Data: The block

Based on the capital flow of Ethereum on CEX and the performance of the spot ETF, the overall trend is similarly not optimistic. The Ethereum spot ETF has been in a net outflow state for almost 30 consecutive days, with market funds continuously withdrawing. Meanwhile, in the past 14 days, the inflow of Ethereum on CEX has been significantly higher than the outflow, with a large amount of ETH being transferred to exchanges, signaling selling pressure.

On-chain analyst @ali_charts’s data shows that in the past week, Ethereum whales have cumulatively sold up to 143,000 ETH, further confirming the trend of market reduction.

Data: Spot On Chain

The cold wind of the market is quietly blowing towards the heart of Ethereum. The gloomy sentiment is spreading like a plague, and investors’ confidence is beginning to waver, as if a storm is inevitable.

In the face of this “bitterly cold” market, is ETH really heading towards decline? Can it turn the tide and reignite hope? At this moment of crisis, what can ETH do to save itself and regain the lost trust?