Ethereum Post-Merge: Have ETH Whales Lost Conviction? Examining Whale Activity After the Merge
Ethereum's [ETH] much-anticipated transition from PoW to PoS in a move dubbed the Merge promised a new era for the blockchain. But has it lived up to the hype, especially regarding whale activity? Are Ethereum's largest whales back in hodl mode after Merge, or are they losing faith?
Whale Holdings: A Mixed Bag of Signals
Whales holding large ETH balances show stagnation, signaling cautious sentiment. This is a critical point to analyze. While some reports indicate a surge in whale holdings in the long term, recent data suggests a more nuanced picture. According to IntoTheBlock, the Ethereum whales ‘ balance has surged from 22% of the coin’s supply in early 2025 to a current value of 43%, indicating about a 100% gain in 24 months. This points to long-term confidence for some. However, short-term behavior tells a different story.
Recent market fluctuations have seemingly impacted whale sentiment. According to market tracker LookonChain, the price of Ethereum has fallen by 18.35% from its Monday high of $4,109, forming a bearish engulfing pattern on the daily chart. This volatility may be contributing to uncertainty among larger holders.
Evidence of Whale Caution: Selling at a Loss
Adding to the ambiguity, some whales appear to be reducing their exposure. So Ethereum whales sold 10,070 ETH at a $1M loss, signaling growing market caution. This highlights the risk aversion strategies that even large players are employing in the current market conditions.
Whales Buying the Dip?
Contradictory to selling, Ethereum’s top 10 largest non-exchange addresses have added 6.7% more ETH after the decline leading up to the Merge in. This suggests that some whales are viewing the post-merge price dip as a buying opportunity, further complicating the overall narrative.
Supply Dynamics: A Growing Concern?
Ethereum’s supply rises to 45K ETH monthly, nearing pre-merge supply levels. Ethereum’s ongoing supply inflation, while less than pre-merge levels, is something whales closely monitor as it can impact ETH value.
Conclusion: Conviction Remains, But Caution Prevails
The post-merge landscape for Ethereum and its whales is complex. While there's evidence of long-term conviction among some, short-term market volatility and concerns surrounding supply dynamics are causing caution among others. The key takeaway is that whale activity is diverse and influenced by various factors, making it crucial to analyze multiple data points to understand their evolving sentiment post-merge. Further observation and data analysis are necessary to fully gauge the long-term impact of the Merge on whale behavior and the overall Ethereum ecosystem.