Ethereum (CRYPTO: ETH) is caught between heavy whale selling and rising institutional adoption, according to fresh expert analysis.

Is Path To $3,000 Certain?

Crypto chart analyst Ali Martinez said Ethereum wallets holding between 1,000 and 10,000 ETH have reversed course after months of steady accumulation.

According to Martinez, this group increased holdings from 12.95 million ETH in April 2025 to a peak of 15.95 million ETH on Oct. 6, 2025.

Since then, holdings have fallen to roughly 12.52 million ETH, marking a 21.5% decline.

This whale cohort has historically provided liquidity during major Ethereum market cycles and their recent selling activity could create a supply overhang risking further breakout.

Martinez said Ethereum may now require a fresh wave of retail or institutional demand to absorb the selling pressure and sustain a move toward $3,000.

Can Institutions Offset The Selling?

Trader Lucky cited investor Tom Lee's long-term bullish view on Ethereum who previously compared the network's evolution to the U.S. dollar's transformation after the collapse of the gold standard in 1971.

ETH is becoming the dominant settlement layer for tokenized finance despite whale distribution creating near-term pressure on price action.

Lucky pointed to several indicators supporting institutional adoption:

  • More than $17 billion in real-world assets tokenized on Ethereum, up 315% year over year
  • Around $8 billion in tokenized U.S. Treasuries operating on Ethereum
  • More than $175 billion in stablecoins settled on the network
  • BlackRock, JPMorgan Chase & Co., Fidelity Investments and Franklin Templeton building tokenization infrastructure on Ethereum
  • Around 61% of global tokenized assets currently operating on Ethereum

The split narrative leaves Ethereum traders watching one key question: can institutional demand outpace whale distribution.

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