Ethereum Finds Its Groove But Big Players Are Quietly Cashing Out

Ethereum is showing some real signs of life after a rocky start to April. ETH nearly hit $1,830 just a few days ago before taking a small breather  and while that’s giving traders something to cheer about, there’s a plot twist behind the scenes.

According to CryptoQuant, Ethereum’s active addresses jumped almost 10% in just 48 hours, suggesting real heat building up on the network. More users, more activity, and a price climb? That’s usually a great combo for momentum. Since Ethereum is the backbone of so many Web3 projects, any serious move in ETH often pulls the whole altcoin market with it.

But and it’s a big but  institutions are starting to quietly offload their ETH holdings.

Data shows a big cluster of Ethereum supply sitting around the $1,895 price range. Many bought during the November 2024 rally, and now that ETH is creeping back toward those levels, some are cashing out. Selling pressure has been noticeable  and it’s not just small players.

Galaxy Digital recently moved 65,600 ETH (worth about $105 million) to Binance, trimming their holdings by a third since February. Paradigm also lightened up, transferring 5,500 ETH to Anchorage Digital. Meanwhile, Ethereum investment funds have seen heavy outflows too $26.7 million just last week, bringing two months of losses to over $770 million.

That said, ETH still has $215 million in net inflows for the year, so it’s not all doom and gloom.

The takeaway? Ethereum’s fundamentals are looking stronger, but if institutions keep selling, the road to new highs could get bumpy.
Momentum is building  but so is caution.