Ethereum Drops 13% Amid Geopolitical Tensions, Whales Buy 116,000 ETH

Ethereum, the second-largest cryptocurrency by market capitalization, experienced a significant price decline of approximately 13% within a 24-hour period. This drop was attributed to geopolitical tensions in the Middle East, specifically the U.S. airstrike on Iranian nuclear sites. Despite this turmoil, a notable Ethereum whale made a substantial purchase of $39 million worth of ETH on June 22. This whale, identified by the address “0x7355…213,” acquired around 9,400 ETH through the Lido staking protocol, bringing their total Ethereum holdings to approximately $330 million.

This purchase was not an isolated event. On June 21, the day before this whale's acquisition, data from Glassnode indicated that Ethereum mega-whales, defined as those holding over 10,000 ETH, collectively accumulated 116,000 ETH. This accumulation amounted to over $263.5 million. The timing of these purchases, immediately following the airstrikes, suggests that these whales view the price dip as a buying opportunity rather than a sign of weakness. This coordinated action implies that institutional players and whales may possess information that retail traders do not.

Technical analysis of Ethereum's price action shows early signs of recovery. According to analysts Sensei and Kans, ETH is holding above a crucial ascending trendline. This trendline was instrumental in the 55% rally observed in April and May 2025. If history repeats, the bounce could push prices 25% higher towards $2,735. Kans highlighted the $2,850 zone as a significant resistance level, where Ethereum has faced repeated rejections. Conversely, $2,350 is emerging as a reliable support level, with buyers actively defending it. This dynamic creates a compression pattern between support and resistance levels.

If Ethereum can break above the $2,850 resistance with substantial volume, it could trigger a rally towards $4,000–$4,100. Conversely, a breakdown below the $2,350 support level could drive prices down to $2,200 or even $2,000, especially if macroeconomic conditions continue to deteriorate. While many whales are optimistic about Ethereum's rebound, some are taking a bearish stance. For instance, a whale with wallet 0xcB92 opened a massive short position worth $97 million around the same time. This whale, known for accurate market timing, now has $14.8 million in unrealized profit. Their decision to short Ethereum just before its rejection at the $2,850 resistance zone adds weight to the bearish narrative, as they anticipate another downward leg.

Interestingly, if Ethereum breaks above $2,850, this short position could be liquidated, potentially fueling another strong upward move. The general Ethereum market appears to be in a wait-and-see mode, with low open interest across exchanges indicating that traders are cautious and staying on the sidelines until a clearer trend emerges. However, low open interest also means that if a significant price movement occurs, the market could experience an explosive move. In summary, while the market may seem quiet, it is more akin to the calm before the storm, with potential for substantial price fluctuations in either direction.