Ethereum found itself at the center of a dramatic tug-of-war on February 9, 2025, as institutional buyers poured $57 million into spot ETH exchange-traded funds while a massive whale transaction triggered a swift 3.2% price drop in under 30 minutes. The divergent forces underscore the growing divide between long-term institutional conviction and short-term speculative pressure in the Ethereum market.
TL;DR
- Ethereum spot ETFs record $57 million in net inflows, snapping a three-day outflow streak
- Whale dumps 8,139 ETH ($21.18 million), triggering a 3.2% flash crash in 30 minutes
- Ethereum Foundation moves 50,000 ETH ($131 million), raising selling pressure concerns
- ETH trades at $2,628 with RSI at 29 — near oversold territory
- Long-term holders accumulate $883 million in ETH on February 7, largest single-day in over a year
ETF Inflows Signal Institutional Conviction
U.S. spot Ethereum ETFs snapped a three-day streak of net outflows on February 9, recording a substantial $57 million in net inflows according to data from Farside Investors. The rebound was driven decisively by institutional buyers who appeared to view the weekend price dip as a buying opportunity rather than a reason to retreat.
The inflow figure is particularly notable because it came on a Sunday — typically a lower-volume day for ETF trading — and during a period when broader market sentiment was deteriorating due to tariff fears. The $57 million inflow compared favorably to Bitcoin ETF flows during the same period, which saw early-week outflows of $140 million before recovering midweek with $340 million in inflows.
According to analysts, the sustained institutional interest in ETH despite price weakness suggests that large investors are positioning for a longer-term recovery rather than reacting to short-term volatility. The combined Bitcoin and Ethereum ETF holdings now exceed $175 billion, underscoring the scale of institutional capital flowing into the crypto sector.
Whale Transaction Sparks Flash Crash
In stark contrast to the institutional buying, a large Ethereum holder — commonly referred to as a whale — executed a sale of 8,139 ETH worth approximately $21.18 million on Sunday evening. The transaction triggered an immediate market reaction, with Ethereum’s price plunging 3.2% within 30 minutes as the sell order cascaded through exchanges.
The whale selloff was compounded by news that the Ethereum Foundation had moved 50,000 ETH, worth roughly $131 million at current prices, to what appeared to be exchange-linked wallets. The Foundation’s wallet activity has historically been a sensitive topic within the Ethereum community, as large transfers often precede selling that puts downward pressure on the price.
Ethereum dropped below $2,600 during the flash crash before recovering to trade at $2,628 by late Sunday. The cryptocurrency posted a weekly decline of nearly 9%, significantly underperforming Bitcoin’s 2% weekly drop.
Ethereum Supply Returns to Pre-Merge Levels
Adding to the bearish narrative, Ethereum’s total supply has returned to pre-Merge levels for the first time since the network’s historic transition to proof-of-stake in September 2022. The total ETH supply reached 120,521,725 on February 5, effectively erasing the deflationary gains that had been celebrated by the Ethereum community.
According to Ultrasound.money, Ethereum’s post-Merge era initially resulted in a net supply reduction, with supply reaching a low of 120,064,500 ETH in April 2024. However, the Dencun hard fork’s impact on Layer 2 transaction costs has reduced the amount of ETH being burned through base fees, leading to a gradual supply increase.
The supply expansion challenges Ethereum’s deflationary narrative and could have implications for price appreciation. With more tokens being minted than burned, the inflationary pressure adds another headwind to an already struggling ETH price. The upcoming Pectra hard fork, scheduled for March, is expected to further influence supply dynamics.
Long-Term Holders Accumulate Aggressively
Despite the bearish short-term signals, on-chain data reveals that long-term Ethereum holders are accumulating at an aggressive pace. CryptoQuant reported that long-term holders added $883 million worth of ETH on February 7 alone — the largest single-day accumulation figure in over a year.
The accumulation pattern suggests a bifurcated market: while short-term traders and whales are selling into weakness, longer-term investors with established track records are using the dip to build positions. This dynamic has historically preceded significant price recoveries in both Bitcoin and Ethereum markets.
Ethereum’s trading volume dropped to $22 billion from $30 billion a month ago, indicating reduced participation from momentum traders. The declining volume, combined with rising long-term holder accumulation, is a pattern that market analysts often interpret as a potential bottoming signal.
Why This Matters
The February 9 price action reveals a market at an inflection point. On one side, institutional investors are voting with their wallets — $57 million in ETF inflows suggests genuine conviction in Ethereum’s long-term value proposition. On the other, whale selling and Foundation wallet movements are creating immediate downward pressure that could push ETH toward the $2,359 support level, with analysts warning that a break below could trigger a decline toward $1,900.
The return of ETH supply to pre-Merge levels adds a structural concern that goes beyond short-term price action. If Ethereum can no longer maintain its deflationary narrative, the investment thesis needs to evolve — and the upcoming Pectra upgrade will be critical in determining whether the burn rate can recover. For now, the battle between institutional accumulation and whale distribution continues, with the $2,600 level serving as the line in the sand.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions. Past performance is not indicative of future results.
8,139 ETH dumped in 30 minutes for a 3.2% crash but ETFs absorbed $57M the same day. institutional buying vs whale dumping is the entire eth narrative right now
Sunday ETF inflows are usually tiny. $57M on a weekend tells you someone with serious size is accumulating
RSI at 29 and long-term holders scooping up $883M in a single day. thats usually the kind of divergence you see right before a bounce
ethereum foundation moving 50K ETH ($131M) while the price is already down 11% on the month feels like pouring gas on the fire
^ hard to trust the foundation timing on these moves. they always say its operational but the market impact is real regardless of intent