Arthur Hayes cut losses on 2,364.38 ether by selling them for 4.3 million USDC, locking in a loss of about $241,000.

On Aug. 1 local time, blockchain outlet Cryptopolitan reported the sale took place as the broader cryptocurrency market showed weakness.

Based on figures compiled by on-chain tracking platform Lookonchain, Hayes moved ether to Cumberland and Galaxy Digital over about two hours. The average sale price was $1,821 per coin. The transaction itself was not large relative to daily ether trading volumes, but it drew market attention because a long-time Ethereum bull reduced his position while accepting a loss.

The crypto market was broadly weak at the time. Total market capitalisation fell about 2.1 percent over 24 hours to $2.25 trillion, and bitcoin hovered around $63,000. Ether also edged lower to about $1,880. The trade drew more focus because it turned an unrealised loss into a realised loss in a period of heavy bearish sentiment.

The loss appears less like a one-off trade over a few days than an unwinding of buying positions built since mid-July. Hayes bought 7,213 ether for about $13.87 million from July 15 to July 28, at an average purchase price of around $1,923 per coin. Lookonchain described it as an unsurprising outcome, saying Hayes once again bought high and sold low.

The backdrop that drew market attention was the contrast with his earlier stance. Hayes had expressed strong confidence in Ethereum prospects toward the end of 2025, saying, "The coming Ethereum bull market will shake the market." At the time, he thought ether could reach $10,000 by year-end.

More recently, his stance has shifted to a defensive one. In his post titled "Reality check," Hayes said it is important to protect crypto assets now. This sale is seen less as abandoning his long-term view on ether than as a step to reduce risk exposure in an uncertain market.

Indicators around the Ethereum network are mixed. The amount currently staked stands at 41.2 million ETH, accounting for about 33.8 percent of the circulating supply, and the validator activation queue has extended to about 43 days. Still, Thomas Brunner (토마스 브루너), head of custody and staking at Sygnum Bank, said rising queue demand does not necessarily mean only new inflows. He said much of the activity comes from reward restaking by existing validators rather than new investors entering.

Price forecasts are also turning more conservative. TD Cowen said progress on regulation of tokenised assets in the United States is slower than expected and lowered its year-end target price for ether to $2,371 from about $3,650. In this situation, Hayes' trade is not large enough to move prices, but it is being seen as an example of what a trader who has frequently adjusted positions with macro trends chooses to do in a bearish market.

Market participants see Hayes' sale as more than a simple whale trade and as a sign of risk management. They said it shows that investment sentiment around ether has yet to recover, given that even a figure classified as a long-term bull accepted a loss while raising the share of cash-like assets.

Arthur Hayes(@CryptoHayes) bought another 3,298 $ETH($6.39M) 3 hours ago. Since July 15, Arthur Hayes has bought a total of 7,213 $ETH($13.87M) at an average price of $1,923 and is now down ~$301K.https://t.co/gau6egd7Vm pic.twitter.com/BoElOKmmaG