Ethereum Reels as "Hyperunit Whale" Dumps $500M, Market Sentiment Sours
Ethereum (ETH) is grappling with significant selling pressure, struggling to reclaim the crucial $2,000 mark amidst elevated volatility and fragile market sentiment. This weakness has been exacerbated by a monumental $500 million ETH sell-off from a major entity, commonly referred to as the "Hyperunit whale," sending ripples of concern through the crypto community.
The Whale's Costly ETH Rotation
On-chain analytics from Arkham reveal that this influential "Hyperunit whale," believed to be a prominent Bitcoin holder of Chinese origin, recently offloaded approximately half a billion dollars in Ethereum. This entity had a storied history, accumulating over 100,000 BTC in early 2018 and maintaining a long-term "hodl" strategy, with over 90% of its holdings untouched for roughly seven years. At its peak, the whale's Bitcoin portfolio was estimated at a staggering $11.14 billion. However, a strategic shift in August 2025 saw 39,738 BTC (worth nearly $4.49 billion at the time) rotated into Ethereum, leading to holdings of approximately 886,000 ETH. Since this pivot, the whale's leveraged ETH exposure and combined BTC/ETH spot holdings have reportedly incurred around $3.7 billion in losses, alongside an estimated $1.2 billion in unrealized losses on staked ETH. Overall, the portfolio has seen a drawdown nearing $5 billion from its peak.
Ethereum's Precarious Technical Position
Technically, Ethereum's price action reflects a sustained downtrend, marked by a clear sequence of lower highs since its late-2025 peak above $4,000. ETH currently trades below key moving averages, signaling a bearish momentum. The recent breakdown below a mid-range consolidation area has triggered accelerated downside volatility, accompanied by a notable surge in trading volume. This spike in volume is often indicative of capitulation or forced deleveraging rather than typical profit-taking. While current stabilization around the $1,900-$2,000 zone might suggest an attempt to form a short-term base, a confirmed recovery would necessitate sustained closes above critical resistance levels, particularly within the $2,200-$2,400 range. Failure to hold the $2,000 psychological support could pave the way for a deeper retracement towards historical support zones.
