Ethereum News Update: Large Investors Anticipate ETH and ADA Recovery While Individual Traders Remain Cautious

Whale Investors Focus on Ethereum and Cardano Amid Market Uncertainty

Large-scale crypto holders, often referred to as whales, are increasingly directing their investments toward Ethereum (ETH) and Cardano (ADA), as revealed by blockchain analytics and recent trading trends. While these major players are building significant long positions, smaller retail investors remain hesitant due to ongoing volatility in the broader cryptocurrency market. Data from Alphractal’s Whale vs. Retail Delta metric highlights this divergence, with institutional investors accumulating while retail-oriented assets see outflows.

Ethereum: Institutional Accumulation and Network Developments

Ethereum’s recent price recovery has been accompanied by notable accumulation from whales. For example, one investor who sold $144 million in Bitcoin over three weeks has shifted focus to ETH, now holding $85.55 million worth of the asset as of November 24, according to blockchain data. Additionally, wallets containing between 10,000 and 100,000 ETH have collectively reached a record 21 million ETH, while those with over 100,000 ETH now control 4.3 million tokens, based on market analysis. This trend coincides with a decline in exchange reserves—Binance’s ETH holdings, for instance, have dropped to 3.764 million—indicating a move toward staking or cold storage.

Ethereum’s underlying technology continues to inspire confidence among long-term investors. The recent Fusaka upgrade, which aligns protocol incentives with economic interests, has strengthened ETH’s reputation as a value-generating asset, according to CoinDesk. Despite this, the market remains turbulent: Ethereum ETFs experienced $1.94 billion in outflows in the week ending November 24, as reported by CoinShares. Nevertheless, analysts such as Ali Martinez have identified key support levels at $2,250, $1,550, and $1,080, which may serve as attractive entry points for accumulation, according to market reports.

Cardano: Technical Challenges and Ecosystem Growth

Cardano (ADA) has faced its own set of challenges. On November 21, the network briefly split into two chains due to a malformed delegation transaction that exploited a bug from 2022. This incident, linked to a stake pool operator, led to a 16% drop in ADA’s price before stabilizing at $0.41. Although the network recovered within a day, the event exposed ongoing technical vulnerabilities. Cardano founder Charles Hoskinson described the event as a “premeditated attack,” while the operator involved claimed it was a “personal challenge.”

Despite this disruption, ADA has demonstrated resilience. The Cardano Foundation has approved a treasury loan of 5 million ADA (approximately $2.07 million) to support the expansion of global token listings, signaling a strategic shift from grants to loans and emphasizing financial discipline. In the aftermath of the chain split, a thorough review is underway to prevent similar incidents in the future, according to market reports.

Retail Investors Remain Cautious

While whales are actively increasing their positions, retail investors continue to exercise caution. Last week, crypto funds saw $1.94 billion in outflows, with Ethereum ETFs accounting for $589 million—representing 7.3% of assets under management, according to CoinShares and market data. In contrast, a prominent whale on Hyperliquid recently added $10 million to their existing ETH long positions, raising their total exposure to $44.5 million. These moves underscore the growing influence of institutional investors in shaping market trends.

Outlook: Diverging Sentiment and Market Forces

The gap between whale and retail behavior reflects broader economic pressures. Future market movements are likely to be influenced by updates from the Federal Reserve and other macroeconomic factors. For now, large investors appear to be positioning themselves for potential rebounds in ETH and ADA, banking on Ethereum’s ongoing upgrades and Cardano’s recovery after its recent technical setback. Meanwhile, retail participation remains subdued, a lingering effect of the $20 billion liquidation event that shook the market in October.