• Ethereum whales show a split, with some dumping and others accumulating large amounts.
• The coin is down nearly 5% year-to-date and continues trading below the $3,000 level.
• Network fundamentals stay strong despite falling prices and whale uncertainty.

Whales are pulling Ethereum (ETH) in opposite directions in late January 2026. On-chain data shows large holders actively rotating capital while others accumulate ETH on dips, highlighting a growing tug-of-war between distribution and long-term positioning.

The contrast comes as market pressure continues to weigh on the second-largest cryptocurrency, which has dropped over 10% in the past week.

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What Are Ethereum Whales Doing Amid January Market Pressure?

Data from BeInCrypto Markets data revealed that Ethereum has erased all its early 2026 gains. The second-largest cryptocurrency is down nearly 5% year-to-date, as it continues to struggle below $3,000.

At the time of writing, Ethereum was trading at $2,863.66, down 2.69% over the past 24 hours.

Against this backdrop, whale behavior appears increasingly split. On the accumulation side, Lookonchain reported that OTC whale address 0xFB7 purchased 20,000 ETH worth $56.13 million.

Over the past five days, the same whale has accumulated a total of 70,013 ETH, valued at approximately $203.6 million. The trend of accumulation is not new.

As previously reported by BeInCrypto, Ethereum whales added more than 350,000 ETH in a single day last week. Furthermore, CryptoQuant data shows that Ethereum exchange reserves have continued to decline.

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This suggests reduced sell-side supply and reinforces the view that large holders are moving ETH off exchanges into longer-term storage. At the same time, capital rotation has also been evident among large holders.

President Trump-backed DeFi project World Liberty Financial shifted its exposure from Bitcoin (BTC) to Ethereum, swapping 93.77 WBTC, worth $8.08 million, for 2,868 ETH. Another whale address, 0xeA00, has offloaded 120 BTC, valued at $10.68 million, and rotated into 3,623 ETH.

Nonetheless, not all whale activity points bullish. An early Ethereum whale wallet, 0xb5Ab, deposited 50,000 ETH, worth $145.25 million, into Gemini after 9 years of inactivity.

“This address withdrew 135,000 ETH ($12.17 million) from the Bitfinex exchange 9 years ago, when the ETH price was about $90. The current price has risen 32 times compared to then. After transferring out 50,000 ETH today, this address still holds 85,000 ETH ($244 million),” analyst EmberCN added.

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Large transfers to exchanges often raise concerns about potential selling pressure, as they can indicate that long-term holders are preparing to realize profits, rebalance portfolios, or reallocate capital.

Lookonchain also highlighted the selling activity of address 0x3c9E, labelled the “buy high, sell low” whale. Over the past three days, the wallet offloaded 5,500 ETH worth approximately $16.02 million at an average price of $2,912. Notably, the same address had bought 2,000 ETH just five days earlier at higher levels, near $2,984.

Ethereum Network Activity Signals Underlying Strength

Amid mixed whale behavior and subdued price performance, Ethereum’s network fundamentals are flashing a bullish signal. CryptoOnchain noted that the seven-day simple moving average of Ethereum active addresses has climbed to an all-time high of 718,000.

“Crucially, the chart highlights a distinct Bullish Divergence between price action and network activity. While the price of Ethereum (ETH) remains in a consolidation phase, the number of active participants has skyrocketed,” the post read.

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CryptoOnchain stressed that the increase indicates that, even amid ongoing volatility, Ethereum’s core network activity and utility remain strong. The analysis added that similar divergences in the past have acted as signals of upward price momentum.

“Whether driven by Layer-2 adoption, renewed DeFi activity, or fresh retail interest, the data indicates that the network is vibrant. The market may soon begin to re-price ETH to reflect this record-breaking fundamental growth,” the analyst wrote.

On the technical front as well, analysts point to several signals suggesting Ethereum is poised for an upward move.

The mix of record active users, shrinking exchange reserves, and technical signals makes the case for Ethereum stronger. Still, overall crypto trends and macro conditions could likely impact the timing of any significant move.

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