Ethereum Drops 2.77% as Whale Moves $408 Million to Exchanges

Ethereum, the second-largest cryptocurrency by market capitalization, is facing a period of uncertainty as a significant whale moved over 155,000 ETH, valued at approximately $408 million, into exchanges. This substantial transfer occurred amidst a backdrop of generally bullish market signals, including a golden cross and increasing institutional inflows.

Despite the overall positive sentiment in the crypto market, Ethereum's price experienced a 2.77% drop, settling at around $2,626. This price movement comes after two consecutive weeks of ETF inflows, indicating sustained institutional interest. The whale's transfer involved moving 120,918 ETH, worth about $317 million, to exchanges, while approximately 34,919 ETH, valued at $91.6 million, remains unstaked and idle.

This transfer coincides with Ethereum trading near a critical resistance level, with the price remaining above the Ichimoku cloud support. The Relative Strength Index (RSI) is just below long-term trend resistance, suggesting a potential inflection point. Continued selling pressure could challenge this technical structure and impact short-term momentum. However, institutional demand, with BlackRock accumulating $1.48 billion in ETH over the past two months, helps absorb sell-side liquidity, although market sentiment remains cautious.

On-chain metrics present a mixed picture. Monthly Ethereum transactions are rising, nearing 2021 levels, indicating growing network activity and adoption, which typically supports price strength. Derivatives data shows a long bias across major exchanges, with long/short ratios above 50% on platforms like Binance, OKX, and Bybit. This signals that traders expect upside continuation. On KuCoin and Gate, long interest also dominates, supported by strong open interest growth. However, liquidations remain elevated at $138.93 million across the market.

Despite the whale's activity, the broader momentum leans bullish, supported by inflows and ETF exposure. Ethereum’s golden cross and RSI breakout could still drive a rally if selling pressure eases. The total crypto market cap stands at $3.54 trillion, with Ethereum accounting for a growing share. Bitcoin rose 0.45% to $108,734, while Ethereum gained 2.77%, extending its relative strength. BTC dominance slipped 0.6%, highlighting Ethereum’s expanding market influence.

The Fear and Greed Index sits at 66, indicating moderate greed, while the Altcoin Index remains subdued at 28. This suggests room for upside across Ethereum and large caps if sentiment strengthens. ETF inflows into Ethereum continue, sustaining institutional interest despite recent whale activity. Overall, while the whale's move introduces uncertainty, the underlying fundamentals and institutional support suggest a potential for continued price strength in Ethereum.