Ethereum Whales Accumulate ETH Despite Price Decline

Ethereum is currently navigating a period of price volatility, with the asset trading near $2,114 and down approximately 29% year-to-date [1]. While some market participants have opened large bearish positions against the cryptocurrency, on-chain data indicates that major holders, or "whales," have been steadily increasing their supply [1, 2].

Key takeaways

• Whale wallets holding at least 100,000 ETH have reached a ten-week high, collectively controlling 22.03% of the total supply [2].
• Between May 1 and May 29, non-exchange whale wallets added over $2 billion in ETH despite a 12% drop in the asset's price [2].
• A trader recently opened a $100 million leveraged short position on Ethereum, with a liquidation threshold set at $2,149 [1].
• Long-term holder behavior, tracked by Glassnode, shows consistent accumulation since late February, contrasting with the heavy selling seen during the market downturn in early 2026 [2].

Divergent Strategies Among Large Holders

The Ethereum market is currently defined by conflicting actions from large-scale investors. While the broader market has seen frustration regarding Ethereum’s performance relative to other assets like Bitcoin and BNB, some whales are taking a long-term accumulation approach [1, 2]. Data from Santiment shows that non-exchange whale wallets increased their holdings by over one million ETH throughout May [2]. This accumulation stands in contrast to the behavior of smaller holders, who have been selling during the same period [2].

Simultaneously, the market is seeing aggressive speculative bets against the asset. A trader identified as “0x50b3” recently opened a leveraged short position totaling 47,604 ETH, valued at roughly $100 million [1]. This move comes amid broader discussions regarding the role of the Ethereum Foundation, which has faced criticism from some investors [1, 3]. However, some market observers note that the Foundation’s influence on price is limited, as it holds only 0.16% of the total ETH supply, significantly less than large corporate entities like Bitmine, which reportedly holds 4.37% [3].

Technical Outlook and Market Sentiment

Technical indicators suggest a potential for a relief bounce, though analysts caution that this does not necessarily signal a long-term trend reversal [2]. A "hidden bullish divergence" has been identified on the Ethereum chart, where the price has printed higher lows while the Relative Strength Index (RSI) has printed lower lows [2]. For this pattern to hold, analysts suggest ETH must close its next two-day candle above $1,964 [2].

If the price fails to maintain this level, it could expose further downside targets at $1,798 and $1,545 [2]. The current market environment remains characterized by "extreme fear," and the sustainability of the current whale accumulation remains uncertain, as these large wallets frequently alternate between buying and selling phases [2].

Why it matters

The current accumulation by whales provides a potential floor for Ethereum, but the asset’s future trajectory depends on whether this buying pressure can offset negative sentiment and ETF outflows [2]. While long-term holders have not engaged in the heavy distribution seen in February 2026, the market remains sensitive to short-term price movements and leverage [2]. Whether the current "relief bounce" manifests will likely depend on continued whale support and the asset's ability to maintain key technical support levels over the coming weeks [2].