Are Ethereum whales anticipating a deeper correction? – Analysis reveals

Are Ethereum whales anticipating a more substantial correction? Whale shorts point to future price pressure, as large ETH transactions increased by over 185 percent. Despite this, wallet activity and retail engagement continue to be robust, indicating underlying network resilience. An Ethereum [ETH] Foundation-linked wallet has triggered fresh sell-side concerns after depositing 1,000 ETH, worth $1.58 million, to Kraken. This wallet had received over 84,000 ETH more than ten years ago, when ETH traded near $1.2.

Meanwhile, a different whale opened a 10-time short position on Hyperliquid after selling 2,056 ETH for $1,591. Together, these actions suggest mounting bearish intent from large players.

Therefore, the question arises—are whales quietly preparing for a deeper correction while retail activity remains strong?

ETH: Retail continues to outpace institutional flows. Market behavior is depicted in a mixed but instructive manner by transaction activity. Transfers above $1 million have surged by 64.24%, while those over $10 million spiked by an astounding 185.71%, underlining the growing influence of large entities.

These rises are a sign that whales are moving their funds more aggressively in preparation for portfolio adjustments or short-term volatility. However, smaller transaction bands—particularly between $1 and $100—also recorded notable growth of +6.71% and +4.82%, respectively.

As a result, despite the increased sell-side pressure, smaller holders continue to interact with the network, indicating that Ethereum's foundational usage remains robust. Wallet growth reveals strong user-level confidence

Ethereum's robust network-level indicators provide a fundamental counterbalance to concerns led by whales. The creation of new addresses increased by 13.93 percent over the past week, indicating improved user onboarding and engagement. Meanwhile, active addresses increased by 3.09%, showing that existing holders continue to interact with the network. Additionally, zero-balance addresses increased by 8.82 percent, indicating that previously inactive wallets are now active. These increases indicate that, despite short-term price volatility and whale movements, organic demand is not fading. Ethereum, on the other hand, continues to attract user interest at a rate that may provide protection against more severe downturns. Are longs with excessive leverage creating a squeeze? Liquidation data reveals rising risk for bullish traders. On the 22nd of April, long liquidations totaled $25.71 million, while short-side liquidations reached only $5.17 million.

These rises are a sign that whales are moving their funds more aggressively in preparation for portfolio adjustments or short-term volatility. However, smaller transaction bands—particularly between $1 and $100—also recorded notable growth of +6.71% and +4.82%, respectively.

As a result, despite the increased sell-side pressure, smaller holders continue to interact with the network, indicating that Ethereum's foundational usage remains robust.

After depositing 1,000 ETH, or $1.58 million, to Kraken, a wallet linked to the Ethereum [ETH] Foundation sparked fresh sell-side concerns. When ETH was trading near $1.2, this wallet had received more than 84,000 ETH.

Meanwhile, another whale sold 2,056 ETH at $1,591 and opened a 10x short on Hyperliquid. Together, these actions suggest that major players are becoming increasingly bearish.

This wide disparity demonstrates that traders continue to be overly optimistic and may ignore the growing bearish sentiment fueled by derivatives volatility and whale exits. Moreover, Ethereum’s trading price stood at $1,584.44, down 3.71% at the time of writing, suggesting that any further drop could rapidly unwind leveraged long positions.

Derivatives volume increased by 49.48 percent to $48.16 billion, while options volume increased by 59.34 percent. However, total open interest decreased by 2.87%, highlighting markets' uncertainty and fragmented conviction.

Can ETH survive, or will it cause more pain? There is now a fork in the road for Ethereum. Retail activity and network participation demonstrate resilience on the one hand, indicating a continued belief in the asset's long-term value. On the other hand, influential players' bearish expectations are indicated by coordinated whale exits and increased short-side leverage.