Ethereum’s recent sell-off has led to significant supply accumulation by large holders, even as the broader altcoin market faces severe liquidity pressures. While ETH whales absorbed over $70 billion worth of tokens, the total crypto market capitalization contracted by roughly $730 billion. This divergence highlights a capital rotation into perceived safety, with Bitcoin dominance climbing to 58% as most altcoins trade below key long-term trend levels.
Aggressive whale accumulation has countered Ethereum’s price decline from its late-2025 highs. As Ethereum approached the $1,900–$2,000 range, defensive selling released large volumes of spot liquidity that larger investors absorbed.
Accumulating balances expanded from roughly 8 million ETH to over 24 million ETH, while realized capitalization climbed from nearly $12 billion to above $70 billion. This absorption helped slow downside momentum despite the price printing lower lows.
The realized price for these whale cohorts initially rose towards $2,600, reflecting earlier entries. However, sustained dip buying bent that curve downwards as the cost basis averaged lower, which investors interpreted as constructive positioning.
In stark contrast, the broader altcoin market experienced relentless net spot selling. Over the past 13 months, cumulative buy/sell quote volume for altcoins sank between approximately -$180 billion and -$210 billion.
This imbalance intensified in early 2026, coinciding with a roughly $730 billion wipeout in total crypto market capitalization. As liquidity drained, many altcoins collapsed by 40–90% from their highs.
Meanwhile, Bitcoin slid by nearly 19% in February towards the mid-$60,000 range, reinforcing risk aversion. Futures Open Interest fell from $61 billion to $49 billion, accelerating deleveraging.
Breadth metrics deteriorated sharply, with nearly 83% of altcoins falling below their 50-week moving average. This breakdown followed Bitcoin’s post-$126,000 retracement, which suppressed risk appetite.
Capital consolidation into majors ran contrary to relentless altcoin distribution, leaving Ethereum supported but still exposed to macro-driven liquidity shocks. The tightening liquid supply now frames whether accumulation can stabilize price or merely precede deeper volatility.
