On-chain data shows broader whale repositioning and subdued trading activity as Ethereum struggles to regain momentum.
A Hyperunit whale whose wallets swapped Bitcoin for Ether last August has sold over $500 million worth of ETH over the weekend, as the second-largest coin by market cap dropped 4% from its intraday high of $2,067.
According to blockchain wallet portfolio tracker Arkham Intelligence, the whale transferred three large tranches of ETH to Binance deposits early Sunday morning. The transfers were made in batches of 69,000 ETH, 96,000 ETH, and 95,000 ETH, totaling more than $500 million at the time of the transactions.
Following the Hyperunit trader’s selling, Ethereum fell from the $2,000 level, extending a decline that has weighed on altcoins for the past two weeks.
Per Arkham Intelligence’s analysis, the Hyperunit whale is believed to be a long-time Bitcoin holder of Chinese origin, whose wallets accumulated more than 100,000 BTC during early 2018, valued near $650 million at the time.
The alleged Chinese BTC investor had a straightforward strategy: acquire Bitcoin and hold it for the long term. More than 90% of those coins were untouched for seven years, and at the peak of activity, the whale controlled Bitcoin valued at approximately $11.14 billion.
The investor dramatically changed his Bitcoin ambitions on August 14, 2025, when he sent 39,738 BTC, worth about $4.49 billion at the time, to Hyperunit-linked wallets in preparation for an asset rotation into ether.
The whale ultimately amassed about 886,371 ETH, valued at more than $4 billion at the time, one of the largest known BTC-to-ETH reallocations recorded on-chain since.
Arkham’s portfolio tracking shows the investor’s total holdings fell from $11.14 billion in August to about $3.13 billion by February 16, 2026, a net decline of almost $8 billion.
The whale is currently sitting on losses of $3.7 billion from its leveraged Ethereum exposure, alongside spot BTC and ETH positions. He has also suffered another $1.2 billion wipeout from staked ETH positions.
At the time of this publication, Ethereum was changing hands at $1,985, down more than 4% from its day-to-day highs, but 0.5% higher on an hourly basis. During the start of Monday’s Asian market trading session, ETH had slipped to around $1,958.
Over the past week, ETH has fluctuated between $1,907 and $2,129, failing to sustain a recovery or establish a clear move above $2,000. The second-largest coin is 60% below its August 24 all-time high of $ 4,946, just 10 days after the Hyperunit whale swapped his BTC for the coin.
According to CryptoQuant’s ETH accumulation chart, $24.6 billion worth of Ethereum changed hands in the last 24 hours. Addresses holding between 100,000 and 1 million ETH sold approximately 1.3 million ETH between February 9 and February 12, transactions valued at $2.7 billion.
However, the same cohort repurchased about 1.25 million ETH within the last 48 hours, hoping the current price level is the chart bottom. Still, after accumulating coins at a steady rate since late December 2025, long-term holders began reducing purchases in early February and started distributing portions of their holdings.
Even though the selling has been more moderate, it shows how uncertain investors are now, despite their strong conviction during downturns in previous cycles.
Moreover, Binance recorded daily trading volume near 486,000 ETH while prices hovered around $2,050. The exchange’s deviations from average trading activity registered an index of around -0.39, falling short of the 30-day moving average.
Historically, such conditions occur when traders rebalance portfolios after weeks of price corrections and consolidations. Ethereum’s decline from previous highs has not been accompanied by a sustained surge in trading volume.
According to market analyst Arab Chain, falling prices without volume expansion are evidence of a gradual shift in distribution from profit takers to bullish investors. “The market may be in a quiet consolidation phase, or at least in the process of absorbing the previous move,” the chartist explained.
Moreover, ETH whales are keeping loss positions comparable to levels seen during the 2021-2022 market cycle, but they have continued buying the dip, Cryptopolitan reported on Sunday.
