Ethereum News Today: Retail Fear Drives Ethereum Selling As Whales Accumulate Shares

Ethereum’s recent price rally has sparked a wave of skepticism among retail traders, with many opting to sell their holdings amid growing fear and uncertainty. According to Santiment, a cryptocurrency sentiment-tracking platform, social media chatter reflects a sharp increase in bearish sentiment compared to bullish remarks, suggesting a growing reluctance among smaller traders to hold Ether [1]. This trend, Santiment noted, may create buying opportunities for large investors, or “whales,” who are actively scooping up the coins being sold [1].

The sentiment shift is particularly notable given Ether’s 53% increase over the past 30 days, according to CoinMarketCap. Despite this upward momentum, Santiment observed that prices continue to face minimal resistance from market sentiment, which could allow Ether to break through historical highs in the near future [1]. This dynamic is attributed to the fact that large stakeholders are acquiring loose coins as smaller traders, driven by fear, part with their holdings [1].

The current market behavior is reminiscent of past episodes where excessive bullish sentiment led to sharp price corrections. Santiment pointed to two instances in June and July 2025, where extreme greed among traders was followed by price pullbacks. These corrections came after a significant drawdown in April when Ether plummeted 60% from its January high, falling below $2,000 [1]. The on-chain data also indicates that short-term holders are selling more aggressively than long-term holders, suggesting a widespread expectation of a near-term price retreat [1].

Ether is currently trading at $4,622, up 7.95% in the last 24 hours, and is approximately 5.53% away from its all-time high of $4,878, set in November 2021. While some traders caution that the rally may be nearing a peak, others remain optimistic. Notably, crypto traders have expressed forecasts of further gains, with some anticipating Ether could eventually reach $10,000 [1]. However, it is important to distinguish such forecasts from actual market performance, as no predictions have materialized yet.

Retail traders’ actions are thus shaping the current market narrative, with their fear and uncertainty potentially fueling a larger accumulation by institutional or high-net-worth investors. The interplay between sentiment and price movement continues to be a key factor in Ethereum’s trajectory, and Santiment’s analysis suggests that the market remains in a state of flux as it navigates between optimism and doubt.

Sources:

[1] Santiment (https://coinmarketcap.com/community/articles/689c0560feba8608209dfd9c/)