Ethereum: A $260 Million Sell-Off Variable Emerges... Warning of Downward Pressure Due to Whale and ETF Movements

▲ Ethereum (ETH)

Ethereum (ETH) is facing concerns of short-term selling pressure due to successive movements of exchange-linked wallets by large holders and spot Ethereum ETF issuers. The on-chain confirmed movement amounted to over 113,000 ETH, approximately $260 million in dollar terms. BeInCrypto reported that this trend emerged immediately after a net outflow of $103.5 million from US spot Ethereum ETFs the previous day.

BeInCrypto reported on the 8th that Ethereum whale Garrett Jin deposited 78,077 ETH, worth approximately $178 million, into Binance. This whale, identified on-chain as BitcoinOG1011, is understood to still hold 303,618 ETH, worth approximately $692.5 million, after this movement. The wallet is also said to contain 9,343 BTC.

This movement garnered market attention as it is unlikely to be a one-off event. According to the original text, Jin also moved 165,000 ETH to Binance two days prior. BeInCrypto explained that he is known for large directional bets in the past, with a history of taking a $735 million Bitcoin short position before the October 2025 crash. However, it was noted that whether the latest Ethereum deposit is a spot sale, a hedge, or a portfolio rebalancing cannot be confirmed solely by on-chain data.

Institutional volume movements were also simultaneously detected. BlackRock's iShares Ethereum Trust sent 11,475 ETH, worth approximately $26.27 million, to Coinbase Prime about three hours before the whale's movement. Fidelity also transferred 23,919 ETH, worth approximately $54.44 million, to Coinbase Prime within an hour thereafter. The combined movements from the two institutions amount to 35,394 ETH, approximately $80.7 million.

However, the movement to Coinbase Prime by ETF issuers does not necessarily mean an immediate spot sale. BeInCrypto explained that ETF issuers sometimes use Coinbase Prime for investor redemptions, custodial transfers, and authorized participant flows. Nevertheless, the fact that coins moved to an exchange-linked platform could suggest a selling intent, and if the movements by Garrett Jin, BlackRock, and Fidelity lead to actual sales, it could put pressure on Ethereum's price.

On May 7th, a net outflow of $103.51 million occurred from US spot Ethereum ETFs. Fidelity's FETH recorded the largest outflow with $62.26 million in redemptions, followed by BlackRock's ETHA with an outflow of $26.31 million. BeInCrypto stated that it will be necessary to monitor future ETF fund flows and Binance order books to see if these deposited assets actually convert into spot market sales.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*