Ethereum Whale Offloads $85M in ETH as Institutions Accumulate

A significant Ethereum whale has divested 33,585 staked ETH, valued at approximately $85 million, amidst a backdrop of institutional accumulation. This transaction occurred as Ethereum's price outperformed Bitcoin, marking a 3% increase over the last 24 hours, while Bitcoin saw marginal gains. The global cryptocurrency market capitalization slightly rose to $3.38 trillion, fueled by optimism over resolving tariff disputes. Despite the sell-off, investor sentiment remains neutral, as indicated by the fear and greed index.

The whale, initially purchasing 132,536 ETH for $333.79 million, sold a portion at an average price of $2,542.2, retaining 100,000 ETH worth around $260 million, largely staked. This move, potentially linked to Alliance DAO, appears to be a strategic portfolio adjustment rather than a bearish signal. Concurrently, institutional players, including a wallet possibly associated with Cumberland, have been actively acquiring ETH, withdrawing significant amounts from exchanges like Binance and Kraken.

Ethereum's price has surged 7% over the past week, trading at $2,616, with a 24-hour trading volume of $18 billion. Despite this, ETH remains 46% below its all-time high of $4,891. Glassnode data reveals a 9.31% increase in holdings by mega whale wallets over nine months, signaling strong institutional interest and potential preparation for a market breakout. Additionally, the SOL/ETH ratio's decline to 0.0586 highlights Solana's underperformance compared to Ethereum, despite similar capital inflows.

Amid these developments, Ethereum co-founder Vitalik Buterin is rumored to be working on a new initiative to address decentralization and governance issues, further fueling speculation within the community.