Ethereum is enduring one of its most turbulent stretches in 2025, and the latest sign of trouble comes not from retail traders, but from the whales—the investors whose massive holdings have often served as a barometer for market sentiment. Their recent capitulation, marked by sizable sell-offs, signals a growing lack of faith in Ethereum’s short- and mid-term prospects.

One of the most striking moves came from an address that held 10,000 ETH for over 900 days. Despite witnessing Ethereum soar past $4,000 during its historic rally, the investor resisted the urge to cash out. Having bought in between October and November 2022 at an average price of $1,295 per ETH, their initial position totaled approximately $12.95 million. Rather than exiting during the bull market and locking in gains of over $27 million at the peak, the whale held on—only to sell the entire stake recently for $15.71 million. The resulting $2.75 million profit is modest when compared to what could have been, serving as a clear example of how even seasoned holders can misjudge the timing of a volatile asset.

Another large investor found themselves in an even more dramatic predicament. In July of last year, they made an aggressive leveraged bet by borrowing between $80 and $91 million in USDT to purchase 26,235 ETH at a price of $3,084 per token. As market sentiment shifted and prices declined, the strategy quickly began to collapse. Attempting to limit the damage, the investor started liquidating their position on March 11, selling 25,800 ETH at $1,853. The remaining 5,094 ETH were sold today for just $1,471 each. In the end, the move resulted in a staggering $40 million loss. It stands as a vivid reminder of the risks tied to heavy leverage in a market as volatile as crypto, where sudden downturns can swiftly erode even the boldest positions.

These two cases aren’t just isolated events; they reflect a broader sentiment shift. Large holders are often considered more resilient and better informed, but when even they choose to exit their positions, it suggests deeper concerns about Ethereum’s near-term direction. Whether driven by technical weaknesses, macroeconomic pressures, or shifting narratives in the blockchain space, their actions send a clear message: uncertainty is outweighing conviction.

It’s worth noting that this wave of capitulation comes amid a wider correction across the crypto market. Ethereum, once celebrated as the backbone of decentralized finance and the go-to platform for smart contracts, is now contending with a loss of momentum and growing competition from newer layer-1 chains. As institutional appetite cools and retail enthusiasm wanes, the market is left wondering whether this is merely a temporary dip or the start of a longer reset.

For now, the exit of whales from the Ethereum ecosystem underscores a key reality: in crypto, no position is too large—or too committed—to cut loose when the tide turns.

By Alejandro Silva Ramírez, Crypto Analyst & Columnist