Increased market volatility continues to persist the price of Ethereum below the $2,000 mark, capping each upward attempt. During the persistent price decline, a divergence has emerged among ETH investors, with large holders selling while small holders buying.
Ethereum Whale Selling Responds to Retail Accumulation in Market Breakdown
The continued decline in Ethereum prices The current situation is taking a toll on investors, as evidenced by their current activity and sentiment. Following this downward trend, a notable divergence in investor behavior is developing, causing large and small holders to move in distinct directions.
Looking the report from Santiment, a leading market intelligence and on-chain data analytics platform, big investors turn to sellingwhile small investors turn to the buy side. Even as retail and local investors enter the market to buy, this divergence raises the possibility that major holders, often seen as whales or institutional-level participants, could lock in profits or reposition.
The current selling activity is seen among wallet addresses holding at least 1,000 ETH, which in this case are considered high-tier holders. In the meantime, purchasing activity takes place among wallet addresses holding less than 1 ETH, reported as low-level investors.
Previously, these high-profile holders collectively held over 75% of Ethereum’s total supply. However, after a dumping of around 1.5% in supply since Christmas, their holdings are now below the level. Such redistribution phases can potentially modify the market structure by shift in supply hands focused at a wider base.
According to Santiment data, mid-tier investors (those holding between 1 and 1,000 ETH) are also regularly buying the altcoin. These persistent purchases pushed their collective holdings above 23% of total supply for the first time since July 2025.
For small holders and low-level investors, ETH accumulation has increased, bringing their collective reserve to 2.3% of the overall supply, the highest level on record. Santiment highlighted that these wallet addresses are likely to grow due to ETH staking.
Staking ETH now takes longer
As Ethereum Staking grows, the process now takes more time than ever. Milk Road common on X, investors would have to wait 71 days and 11 hours to stake ETH. Recently, Ethereum staking reached 30% of the total supply, locking up 36.8 million ETH valued at $72 billion.
The 4.1 million ETH queue suggests that demand for stake is at an all-time high while the altcoin’s price sits below $2,000. Meanwhile, the exit queue is virtually non-existent in comparison, with only 75,872 ETH exiting. Such a trend is an indication of conviction and not of productive agricultural behavior. When people lock up $74 billion during a price decline, it means they are settling instead of speculating. “Watch that queue, it’s a sentiment indicator,” Milk Road added.
Featured image from iStock, chart from Tradingview.com
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