Ethereum News Today: Ethereum Whales Split on Risk as 40% of Supply in the Red

Ethereum's price dynamics took an intriguing turn as 40% of its circulating supply slipped into a loss-making position, signaling a pivotal moment for investors and traders alike. This shift occurred amid a backdrop of intense trading activity, particularly on platforms like MEXC, where Ethereum Eco Month saw record-breaking futures trading volume. The market's volatility prompted contrasting strategies among large holders, with some taking aggressive bets while others engaged in substantial asset reallocation.

Ethereum's bearish price action was mirrored by increased leverage activity, with a notable whale deploying 25x leverage on the Hyperliquid platform to take a long position. The move, which exposed the whale to a liquidation trigger at $2,882.84, underscored the high-stakes nature of ETH trading in the current climate. Meanwhile, a whale named Winslow Strong deposited $47.22 million worth of Ethereum, cbBTC, and USDC into Coinbase, indicating a broader trend of liquidity management and portfolio diversification.

The market's mixed signals were further amplified by corporate developments in the Ethereum space. Sharplink Gaming, a company with a significant Ethereum treasury, reported strong gains from its holdings, contributing to a 2.77% stock price increase. In contrast, Core Scientific, transitioning from Bitcoin mining to AI infrastructure, faced financial headwinds and a 16% revenue decline in its Q1 2025 report, despite a bullish outlook from analysts.

Why the Standoff Happened

Ethereum's recent price correction has forced a reevaluation of strategies among both retail and institutional participants. The MEXC Ethereum Eco Month, which concluded on December 24, 2025, recorded $114.4 billion in futures trading volume, highlighting the platform's role as a hub for high-volume Ethereum trading. The campaign featured zero-fee trading periods, staking opportunities, and prize pools that attracted 61,128 participants, reinforcing the asset's popularity in the derivatives market.

This surge in activity coincided with a bearish shift in on-chain sentiment. According to Onchain Lens data, a major whale took a highly leveraged long position on Hyperliquid, deploying 25x leverage to hold 5,063 ETH (approximately $15 million). The whale's liquidation price of $2,882.84 suggests a high-risk, high-reward approach amid the market's volatility. Such positions often reflect a belief in Ethereum's long-term fundamentals despite short-term price fluctuations.

In parallel, Winslow Strong's deposit of $47.22 million to Coinbase-encompassing 1,900 ETH, 307 cbBTC, and $14.7 million in USDC-illustrated a different kind of strategy. The diversified portfolio emphasized liquidity management and risk mitigation, particularly as Ethereum's price hovered near key support levels. This activity points to a broader trend of asset reallocation rather than speculative trading.

How Markets Reacted

The Ethereum market's mixed signals have led to diverging investor behaviors. On one hand, Sharplink Gaming's Q3 2025 report showcased the potential of Ethereum treasury holdings, with the company's stock rising 2.77% following the announcement of $10.8 million in revenue and a $104.3 million net income. The company now holds $11.1 million in cash reserves, up from $1.4 million in December 2024, and is positioning itself as a leader in Ethereum treasury management.

On the other hand, Core Scientific faced challenges in its pivot from mining to AI infrastructure. The company reported a Q1 2025 revenue decline of 16% to $79.5 million and an adjusted EBITDA of -$6.1 million. Despite these hurdles, management remains optimistic about profitability in 2025 and emphasized AI's potential to transform infrastructure according to earnings reports.

The contrasting outcomes underscore Ethereum's dual role-as both a speculative asset and a foundational element of blockchain infrastructure. For investors, this duality presents both opportunities and risks, particularly as Ethereum's price remains in a consolidation phase.

What This Means for Investors

For traders, the current Ethereum landscape is defined by high leverage, liquidity shifts, and corporate strategy. The whale activity on Hyperliquid and Coinbase demonstrates a spectrum of approaches-some leaning into volatility, others hedging for stability. The MEXC campaign's success further illustrates the growing appetite for Ethereum-based trading incentives, especially among retail participants.

Corporate developments also play a crucial role. Companies like Sharplink Gaming and Core Scientific highlight how Ethereum's utility extends beyond speculative trading into real-world applications. Sharplink's gains from Ethereum holdings, for instance, have driven significant stock appreciation, while Core Scientific's transition to AI infrastructure reflects the broader blockchain-to-AI shift.

Investors must remain cautious, however. The market's high leverage positions and liquidity management strategies suggest a volatile near-term outlook. As Ethereum's price tests support levels around $2,882.84, any break below could trigger further liquidations and market panic. Conversely, a rebound above $3,000 could reinvigorate bullish sentiment.

In the coming weeks, attention will likely turn to Ethereum's on-chain activity, whale movements, and corporate earnings reports. The interplay between speculative trading and fundamental development will shape Ethereum's trajectory, making it a focal point for both crypto-native and traditional investors.