Ether (ETH) the second largest cryptocurrency by reported market cap and the native coin of the Ethereum smart contract protocol is having a tumultuous 2026. Down 38.6 percent on a year-to-date (YTD) basis, the cryptocurrency is now falling out of favor with ETH whales. However, retail continues to buy.
Ethereum whales dump while retail investors buy
According to fresh on-chain data two forces are logging horns in opposite directions regarding Ethereum. 3 key metrics pop out which show the contrasting behaviour between ETH whales and retail investors – accumulating retail addresses (ARA), spent output profile ratio (SOPR), and net unrealized profit/loss (NUPL).
As of Wednesday, ARA has surged to near record levels that were last seen in late 2025, and early 2026. Past data shows that the strongest buying activity tends to come from retail buyers during the latter stages of a market cycle. At the same time, large players start distributing their holdings.
Meanwhile, SOPR has been hovering around 1 for a long time now, suggesting that not only are investors finding it challenging to realize profits, but also that new capital inflows into the market remain largely limited.
To explain, SOPR measures if investors are selling their holdings at a profit or a loss, by comparing the selling price to the original purchase price. A SOPR above 1 indicates profit-taking, while a SOPR below 1 suggests investors are realizing losses, and may be very close to capitulating.
Further caution is being signalled by NUPL. Although unrealized profits have been on a downtrend, they are still above the extreme levels seen during the 2018 and 2022 bear markets. In simple words, it shows that there might be more ETH sell-off on the horizon if sentiment further deteriorates.
ETH reeling under significant selling pressure
Despite retail investors continuing to buy ETH, the digital asset’s price remains stagnant. In the latest market slump, ETH fell below $1,900, meaning that selling pressure is ongoing from the other side of the market.
As for why the current price decline is more gradual than abrupt, the answer lies in Binance User Deposit Addresses (BUDA). Data shows that BUDA is still below previous bull-market peaks, hinting that investors are choosing to hold Ethereum instead of sending to exchanges for liquidation.
That said, some analysts are viewing Ethereum’s current price action as an attractive buying opportunity. Crypto analyst Titan of Crypto shared the following ETH weekly chart, highlighting how ETH is approaching the lower boundary of its long-term ascending channel.
Other technical patterns suggest more upcoming pain for Ethereum. On the weekly chart, ETH has broken down from a bear flag, threatening a major crash all the way down to $1,075.