Ethereum News Today: Retail traders dump Ethereum as whales buy discounted shares amid bearish sentiment

Retail traders are offloading Ethereum holdings amid growing skepticism about the recent price rally, with large whales scooping up the discounted sales, according to Santiment data. The analysis highlights a shift in market sentiment, where smaller traders—showing heightened fear—are exiting positions even as the broader market continues to rise. This contrast has led to increased buying pressure from larger, more strategic participants, who appear to be capitalizing on what they view as undervalued opportunities [1].

Social media chatter reveals a strong sense of fear, uncertainty, and doubt among retail traders, with bearish commentary outweighing bullish remarks. Santiment noted that this “disbelief” is not uncommon during sharp price movements, and historically, such sentiment has preceded corrections after periods of extreme greed. The sentiment-tracking platform pointed to prior instances of sharp sell-offs in late June and late July 2025 following similar patterns of retail anxiety [1].

Despite this bearish outlook from smaller traders, Ether has continued its upward trajectory, rising 53% over the past 30 days and trading at $4,622 at the time of publication. Onchain data from Glassnode also shows that short-term holders are selling more aggressively than long-term holders, signaling potential expectations of a pullback [1].

Santiment’s analysis does not cite any specific price targets or forecasts but instead focuses on observable behavior patterns. It notes that key indicators, such as trader fear and the dominance of larger trade sizes, point to a potential shift in market structure. These signals are being closely watched by analysts and traders who see them as early signs of a trend reversal or consolidation phase [1].

The data aligns with recent reports from other platforms, such as Leap Digital Investments, which noted that Ethereum approached $4,000 amid bearish disbelief and increased retail dumping of Bitcoin. Meanwhile, whales have been aggressively accumulating Ethereum, suggesting a possible repositioning of capital toward the second-largest cryptocurrency [2].

As the market continues to evolve, these behavioral shifts offer valuable insights for both retail and institutional investors. Santiment’s findings emphasize that price action alone is not always a reliable indicator—understanding the sentiment and actions of different market participants can provide a more nuanced view of where the market is headed [1].

Source:

[1] Cointelegraph - [https://cointelegraph.com/news/ether-price-rally-bearish-social-media-santiment](https://cointelegraph.com/news/ether-price-rally-bearish-social-media-santiment)

[2] Leap Digital Investments - [https://leapdigitalinvestments.com.au](https://leapdigitalinvestments.com.au)