A recent transfer of $159 million by an Ethereum whale has caught the attention of the crypto community amid signs that large investors are slowing their accumulation. This development comes as Ethereum’s price struggles to maintain support levels, triggering speculation about whether a significant sell-off might be on the horizon.
Ethereum Price Dips Amid Market Uncertainty
At the time of writing, Ethereum (ETH) trades around $2,480, down nearly 5% over the past day. The decline follows a sharper 7.34% sell-off on June 5, which caused ETH to fall below the $2,400 support level for the first time in over two weeks. This downward momentum has raised concerns about the resilience of Ethereum’s price and the intentions of large holders.
Whales Accumulate During Dips but Momentum Weakens
Data from blockchain analytics firm Glassnode shows that since February, the number of Ethereum whale wallets—those holding more than 1,000 ETH—has increased significantly. During this period, ETH’s price fell from around $2,700 to a low near $1,440 in mid-April. This suggests that whales were accumulating ETH while prices were dropping, likely betting on a rebound.
However, as Ethereum surged back by roughly 50% in May to $2,700, whale accumulation started to slow. The total number of whale wallets peaked at 4,953 in early May before slightly dropping to 4,914 as the price traded sideways between $2,300 and $2,500. This tapering off indicates that many whales may have reached breakeven points and are becoming cautious about further accumulation.
Profit Margins Narrowing, Sell Pressure Could Follow
The recent $159 million transfer by a whale signals a possible early step toward profit-taking. While it does not definitively mean a large-scale dump is imminent, it suggests that some large holders might be preparing to reduce their exposure as profit margins narrow.
For Ethereum to avoid a sharp correction similar to February’s sell-off, maintaining critical support levels—especially around $2,350—is essential. If this level holds, whales might stay put, buoyed by expectations of a price breakout. But if ETH falls decisively below $2,350, it could trigger cascading sell-offs as confidence wanes.
Institutional Interest Remains Strong
Despite these warning signs, institutional demand appears resilient. Ethereum exchange-traded funds (ETFs) have continued to see steady inflows for the past month, showing that professional investors still have faith in Ethereum’s long-term prospects.
The ETH/BTC trading ratio also reflects a cautious but firm stance. While it remains range-bound and indecisive, it has not broken down as sharply as during previous cycles. This stability could help Ethereum weather short-term volatility.
What the Data Suggests for Traders
The overall picture is one of cautious optimism mixed with increased risk. Whales who endured significant losses earlier in the year are no longer aggressively buying but have not yet fully exited. Meanwhile, institutional inflows provide a supportive floor beneath the price.
Traders should watch the $2,350 support level closely. Holding above this line may attract new buyers and maintain momentum. However, slipping below it could invite broader selling pressure and a deeper market correction.
Final Thoughts
Ethereum’s recent whale activity and price behavior show that the market is at a critical juncture. The $159 million transfer might be a sign that some smart money is taking profits, but widespread capitulation is not yet evident.
Sustained institutional interest and a relatively stable ETH/BTC ratio offer hope that Ethereum can consolidate and prepare for a potential next rally. However, investors and traders should proceed with caution and monitor key support levels to navigate the evolving landscape.
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