Hedge Fund Dumps Ethereum for Solana as ETH Price Drops 50% YTD

Ethereum (ETH) is losing favor among major institutions. One of the most telling signs: Galaxy Digital has begun offloading millions in ETH for Solana (SOL).

About $105 Million in Ethereum Dumped for Solana

According to recent on-chain data, the Mike Novogratz-led hedge fund deposited over 65,000 ETH (worth $105 million) to Binance this month and withdrew more than 750,000 SOL (valued at $98 million).

🚨JUST IN : Galaxy Digital shakes up the crypto scene offloading 65,600 ETH ($105.48M) to Binance while scooping up a massive 752,240 SOL ($98.37M) in the past two weeks. pic.twitter.com/GvafCF6w2g

— Watcher Oracle (@WatcherOracle) April 22, 2025

Galaxy Digital’s shift appears strategic, not reactive. As Ethereum struggles with price weakness and network slowdowns, Solana has emerged as a high-throughput, lower-cost alternative, bolstered by fresh ETF listings and surging user engagement.

One key factor driving the move is Canada’s launch of spot Solana ETFs with staking features. These offerings provide yield-generating exposure to SOL, starkly contrasting Ethereum’s current inflationary environment.

For institutional players like Galaxy, staking incentives enhance total returns and reduce opportunity costs.

What’s Going Wrong With Ethereum?

Ethereum has been one of 2025’s worst-performing large-cap assets. After peaking near $4,100 in December 2024, ETH has crashed to around $1,600, marking a more than 50% year-to-date drawdown.

Several factors are behind this decline:

• Tariff Shock and Macroeconomic Stress: US President Donald Trump’s trade war policies, including sweeping new tariffs, have shaken global markets. Risk assets like Ethereum have been hit hardest amid rising uncertainty and shifting capital flows.

• Decreased Network Activity: Ethereum’s daily transaction count and DeFi engagement have dropped. Layer-2 adoption is growing, but the base layer shows signs of fatigue. Meanwhile, competitors like Solana are surging past ETH in active addresses and DEX volume due to memecoin frenzy.

Together, Ethereum’s price struggles and ecosystem stagnation have prompted some investors to look elsewhere, and for Galaxy Digital, that “elsewhere” is Solana.

Ethereum Bulls Are Fighting Hard — Is $2,000 Still Possible in April?

Despite the broader downtrend, Ethereum bulls are showing resilience.

The ETH/USD chart shows a clear ascending triangle pattern on the 4-hour timeframe — a bullish reversal setup. On April 21, Ethereum briefly dipped below the triangle’s rising trendline, but bulls quickly stepped in to reclaim the level, pushing the price back above $1,600.

This move confirms that buyers are defending the triangle structure. The key breakout level is around $1,635. If ETH closes above this resistance, the next target sits near $1,932. This target comes from the height of the triangle projected upward.

The RSI has bounced near the neutral 50 level, indicating a shift in momentum toward the bulls.

However, Ethereum still faces another major hurdle: the 200-EMA near $1,756. A clean break above $1,635 and $1,756 would increase the chance of ETH retesting $2,000 before the end of April.

ETH Whales Are Still Accumulating

Despite the recent selloff and Galaxy Digital’s rotation into Solana, not all large players are exiting Ethereum.

According to Glassnode data, addresses holding between 1,000 and 10,000 ETH — often classified as whales — have steadily increased since early 2024. The supply held by these wallets has risen from multi-year lows below 12 million ETH to over 13.5 million ETH as of April 2025.

The Whale Net Position Change indicator (purple) has remained mostly positive throughout Q1 and Q2 2025, suggesting continued accumulation. Historically, this behavior signals longer-term confidence, even when short-term price action appears weak.