An Ethereum Whale Hibernating for Two Years Withdraws 44,233 ETH in a Single Day from Binance

The immediate on-chain event is stark: a whale withdrew 44,233 ETH from Binance on February 5, 2026, a move worth approximately $100 million at current prices. This is a direct, long-term reduction in circulating supply, pulling a significant block of ETH off the exchange where it could be sold. The action stands in contrast to a broader pattern of institutional and whale activity that has been pressuring the market, including Trend Research moving 203,000 ETH to Binance earlier in the month.

The immediate liquidity impact is clear. By removing such a large amount from an exchange, the whale shrinks the available pool of ETH for trading. This reduction in exchange liquidity can amplify price moves, particularly on large sell orders, as there is less depth to absorb them without significant slippage. In a market where whale behavior is a stronger signal than active address counts, this withdrawal is a notable shift.

Viewed another way, this single-day event is a major supply shock. It directly removes $100 million in potential sell-side pressure from the ecosystem. While other large transfers to exchanges create selling pressure, this one does the opposite, potentially setting the stage for a price-supporting squeeze if demand remains firm.

The Context: A Market in Unwind and Reaccumulation

The market is caught in a tug-of-war between conflicting flows. On one side, a major supply reduction is occurring. A whale withdrew 44,233 ETH from Binance on February 5, 2026, a move that directly removes $100 million in potential sell-side pressure. This stands in contrast to a broader pattern of institutional and whale activity that has been pressuring the market, including Trend Research moving 203,000 ETH to Binance earlier in the month.

On the other side, extreme volatility and liquidation flows are creating massive selling pressure. The same whale who withdrew 44,233 ETH had previously lost roughly $250 million on a leveraged short, a catastrophic event that wiped out his fortune almost overnight. His recent withdrawal signals a strategic pivot to spot accumulation, but his history underscores the market's violent swings. More broadly, other major players are unwinding positions. Trend Research blew out a roughly $2 billion leveraged Ethereum long, and on-chain data shows major Ethereum holders, funds and insiders are selling, including Aave founder Stani Kulechov and wallets linked to Konstantin Lomashuk, who were reportedly liquidated.

The net sentiment is one of high stress. While the whale's withdrawal is a bullish signal for supply, it is dwarfed by the scale of the liquidations and profit-taking. The market is experiencing a simultaneous unwind of leveraged longs and a reaccumulation by a few key players. This creates a volatile setup where price action will be dictated by which flow dominates-whether the supply squeeze from selective accumulation can overcome the broad-based selling pressure from forced deleveraging.

The Catalyst: What to Watch for a Squeeze to Materialize

The whale's withdrawal is a signal, not a guarantee. The key metric to watch is sustained price action above the $2,000–$2,100 range, which the move suggests is a potential long-term bottom. If ETH holds and rallies from there, it validates the supply reduction. If it breaks down, the squeeze thesis fails.

Monitor exchange flows for confirmation. The true test is whether the withdrawn ETH stays in private wallets. If inflows to major exchanges remain low or turn negative, the supply shock persists. Conversely, if large amounts flow back onto exchanges, the whale's strategic accumulation is overwhelmed by broader selling pressure.

The next major catalyst is the performance of Spot Ethereum ETFs. These products can absorb or exacerbate the existing supply-demand imbalance. Sustained ETF inflows would provide a powerful, institutional buyer that could amplify any price support from selective accumulation. Outflows, however, would add to the selling pressure from liquidations, making a squeeze far less likely. Watch the ETF flows as a leading indicator of institutional capital flow.