Why Ethereum Whales Selling in August Isn’t Bearish

Key Points

• Why Ethereum Whales Selling in August Isn’t Bearish
• Ethereum whales with 100,000+ ETH are decreasing
• Shark wallets (10K–100K ETH) are rapidly growing
• Institutions and ETFs now hold 10.2M ETH
• Analysts say this shift is not bearish, but strategic

Ethereum whales are selling, but that’s not the bad news it may seem. While large holders offloading ETH might typically ring alarm bells, analysts argue this time is different. Here’s why the shift in Ethereum ownership signals a new phase, not a downfall.

Ethereum Whales Are Shrinking, But Sharks Are Swimming Strong

The number of whale wallets, addresses holding over 100,000 ETH, has fallen to about 70, down from more than 200 in 2020. That’s the lowest level seen in nearly a decade.

Ethereum Addresses with Balance >100K ETH. Source: Alphractal – Techtoken

This may sound bearish at first glance. But zoom in, and the picture changes.

Wallets holding between 10,000 and 100,000 ETH, known as “sharks,” have been growing fast. In just one month, August saw shark wallets increase from around 900 to over 1,000.

🐳The number of Ethereum Whales is dropping! Yes, that’s right — as ETH rises, both the amount and the share of supply held by the largest addresses have been falling day by day.

But before you say “that’s bearish,” remember: the same thing also happens with Bitcoin. On-chain… pic.twitter.com/WRBlDY68LV

— Joao Wedson (@joao_wedson) August 18, 2025

That’s a solid jump in mid-tier holdings, reflecting rising confidence in Ethereum from newer, active buyers.

🐳The number of Ethereum Whales is dropping! Yes, that’s right — as ETH rises, both the amount and the share of supply held by the largest addresses have been falling day by day.

But before you say “that’s bearish,” remember: the same thing also happens with Bitcoin. On-chain… pic.twitter.com/WRBlDY68LV

— Joao Wedson (@joao_wedson) August 18, 2025

Joao Wedson, founder of on-chain data firm Alphractal, says this isn’t a bearish move. It’s a healthy market evolution.

Ethereum Addresses with Balance Between 10k – 100K ETH. Source: Alphractal – Techtoken

“Before you say ‘that’s bearish,’ remember this also happens with Bitcoin,” Wedson notes. “Real price drivers are mid-sized players, the sharks.”

Many whale wallets, he explains, are owned by early adopters, exchanges, or long-inactive addresses. Some could be dormant forever due to lost access. These aren’t the players moving the market anymore.

🐳The number of Ethereum Whales is dropping! Yes, that’s right — as ETH rises, both the amount and the share of supply held by the largest addresses have been falling day by day.

But before you say “that’s bearish,” remember: the same thing also happens with Bitcoin. On-chain… pic.twitter.com/WRBlDY68LV

— Joao Wedson (@joao_wedson) August 18, 2025

Instead, it’s sharks and mid-sized institutions that are doing the heavy lifting. Their consistent buying shows belief in Ethereum’s future value, and a strong hand in guiding its direction.

You can compare this with how Bitcoin is behaving ahead of major events like Jackson Hole, where institutional players are also setting the tone.

Institutions and ETFs Are Scooping Up ETH Fast

Beyond individual sharks, institutional buying is now dominating ETH accumulation. Companies, funds, and Ethereum-based ETFs have quietly been loading up.

According to on-chain analytics, a combined 10.2 million ETH, worth around $39.48 billion- is now held by institutional players. This shift became more visible in July and has only gained momentum since.

Ethereum Retail and Large Investor Holdings. Source: CryptoQuant. – Techtoken

CryptoQuant data shows that retail investors are slowly exiting ETH holdings. Retail addresses now hold just 8.5 million ETH—multi-year lows. Meanwhile, large holder wallets have climbed to 19.1 million ETH—an all-time high.

That’s a massive shift in ownership.

“Retail wallets are shrinking. Large investors are taking over. The price hasn’t caught up yet, but the story is in the data,” says analyst IT Tech.

🟣 Retail is leaving Ethereum, whales are doubling down.

3 things the chart shows:
1.Retail wallets dropped to 8.5M ETH – multi-year lows.
2.Large holders climbed to 19.1M ETH, an all-time high.
3.Price hasn’t caught up yet, but ownership shift is clear.

Who do you think will… https://t.co/FHQXcOD6cZ pic.twitter.com/MKMTJ0D4E2

— IT Tech (@IT_Tech_PL) August 18, 2025

This transfer of Ethereum supply from scattered retail users to consolidated institutional holders is a big deal. It could lead to more stable price action, higher liquidity, and a maturing market structure.

It’s not just about price speculation anymore; it’s about long-term strategic positioning.

Wedson adds that the current holders, especially sharks and institutions, are showing stronger confidence in Ethereum’s value proposition, its role in decentralized finance, tokenization, and smart contract innovation.

So while the “whales” may be leaving the table, they’re being replaced by smart money that sees Ethereum as a long-term digital asset, not just a trade.

This trend mirrors other key developments across crypto, including the rising influence of meme coins and their exchange reserves on overall market dynamics.

What This Means for Ethereum’s Price and Market Psychology

Historically, whale movements have been seen as leading indicators for price action, often causing fear when they sell. But this time, the market reaction has been surprisingly calm. And that says a lot about how Ethereum’s investor base is evolving.

The reduced reliance on whale activity may signal a more decentralized and resilient market structure. Instead of sharp price swings tied to single-entity movements, Ethereum is now seeing influence spread out among thousands of mid-tier wallets and institutions.

This shift also changes investor psychology. Traders and long-term holders may begin to interpret large outflows from whale wallets not as panic signals, but as part of Ethereum’s journey toward greater decentralization and institutionalization.

The Ethereum Foundation and ecosystem developers have long encouraged wide participation and distributed ownership. Ironically, the decline of whales is exactly the kind of decentralization they’ve been aiming for.

For Ethereum’s price, the result could be slower but more sustainable growth. Institutional holders are typically longer-term focused, less reactive to headlines, and more focused on infrastructure, staking, and real-world use cases.

It’s a model similar to how Bitcoin volatility shifts during key Fed weeks, as stronger hands take control of the narrative.

This evolution is also changing how teams in Web3 operate—from ownership shifts to leadership exits, such as Story Protocol’s co-founder stepping away, to how regulatory cases like the SEC vs Ripple settlement impact market sentiment.

Ethereum, just like the broader crypto world, is entering a new cycle—one where the biggest advantage of crypto is no longer just decentralization, but its adaptability in the face of changing holders, tech, and institutional players.