Ethereum down 45% YTD – So why do SharpLink and whales keep buying?

Amid the ongoing crypto weakness, Ethereum [ETH] remains underwater, down 20%-45% YTD. Despite this drawdown, the leading altcoin continues to draw institutional interest.

SharpLink resumed purchases after eight months, adding 5,000 ETH, worth roughly $7.88 million at an average price of $1,576, through FalconX.

Moments later, the crypto treasury reinforced the inflow with another 26.324K LSETH worth $45.54 million. These purchases pushed Sharplink’s total holdings to 876,285 ETH, including 22,102 staked tokens.

Although the treasury holds nearly $1.71 billion in unrealized losses, accumulation suggests conviction in Ethereum’s long-term utility and staking income.

If broader institutions continue absorbing weakness, selling pressure could gradually ease. However, sustained recovery still depends on renewed network demand and improving market sentiment.

Whales increase Ethereum exposure

That institutional conviction is no longer limited to corporate treasuries. Instead, whale wallets are beginning to mirror the same accumulation pattern despite lingering market uncertainty.

In the last nine days, a newly created wallet accumulated 18,361 ETH worth $28.9 million, alongside 152,986 Hyperliquid [HYPE] worth $9.73 million through FalconX.

The consistent buildup of assets by this whale indicates that these larger whales are creating exposures for future price swings instead of trying to react to each day’s price movement.

At the same time, BlackRock moved 2,700 Bitcoin [BTC] and 41,996 ETH to Coinbase, totaling $226 million. These moves are usually related to either ETFs settling transactions, adjusting custodial services, or managing liquidity.

However, they do not directly represent a sale. Whether whales continue to accumulate Ethereum or institutions become active will be key to determining the long-term outlook of Ethereum.

All in all, whale accumulation and institutional activity suggest confidence is gradually rebuilding, even as broader market demand still needs to strengthen.

ETF outflows cap Ethereum’s recovery

Yet that rebuilding confidence has not translated into broader institutional demand. According to SosoValue data, Spot ETFs have experienced heavy outflow, recording a $12.85 million net withdrawal on June 26th.

Earlier inflows of $22.50 million and $9.59 million briefly suggested sentiment was stabilizing before sellers regained control. This divergence indicates that direct treasury buyers and ETF investors are responding to different market conditions.

This divergence by treasuries and ETF investors reflects differing market conditions. Although the huge amount of capital withdrawn from these accounts has resulted in cumulative net inflows being a high $10.90 billion.

Meanwhile, ETF issuers still hold over $8.38 billion, representing 4.42% of Ethereum’s market value, with a daily trading volume of $491.73 million, suggesting that institutions will continue to realign positions rather than abandon ETH entirely.

Final Summary

• Ethereum [ETH] treasury and whale buying continue despite weak prices, reinforcing long-term institutional conviction.
• Ethereum recovery still requires stronger ETF inflows to offset persistent institutional outflows.