Ethereum Faces 49.74% Whale Pullback, 56.31% Fee Drop

Ethereum's price has been holding steady around $1,600, but the cryptocurrency faces significant resistance at higher levels. Over 6.28 million ETH are held between $2,295 and $2,350 by 2.6 million addresses, forming a substantial resistance cluster. This concentration of ETH could create immediate selling pressure if the price moves into this zone, as holders may seek to break even. A breakout above this area would not only flip key resistance into support but also signal renewed confidence among sidelined participants.

Ethereum's on-chain health presents a mixed picture. Total fees on the network have dropped sharply, declining by 56.31% over the past week and 88.89% over the last 90 days. This steep drop suggests weakening demand and subdued usage of the Ethereum network. Additionally, large holders have pulled back significantly, with whale netflows plunging by 49.74% in the last seven days and over 447.53% across the last month. This hesitation among institutional players could reduce Ethereum's breakout potential. Although some ETH has been leaving centralized exchanges, the lack of active accumulation by whales limits upside pressure. Without renewed institutional conviction and a spike in fee activity, any rally attempt may face exhaustion.

Despite the challenges, Ethereum has shown early signs of recovery, climbing by 3.62% in the last 24 hours to trade at $1,647.83. The asset rebounded strongly from the $1,385 support level to test the $1,650–$1,703 resistance zone. However, ETH remains trapped within a descending parallel channel, which has capped multiple recovery attempts. The horizontal level at $1,703 seems to be in line with the upper boundary of the channel, forming a dual resistance zone. A confirmed breakout above this zone would invalidate the bearish structure and potentially trigger a rally towards $2,330. Until then, Ethereum’s market structure will favor caution.

Investor sentiment holds steady amid cautious optimism. Exchange netflows revealed weekly outflows of 29,948 ETH, reflecting a 1.96% fall in balances on trading platforms. This hints at cautious confidence as traders anticipate a future breakout rather than immediate gains. However, the sentiment remains divided across the board, with retail optimism not yet mirrored by institutional players or rising network engagement. Conclusively, Ethereum’s chances of breaking the $2,330 supply wall remain limited in the short term. While the recent rebound and exchange outflows signal mild optimism, the absence of whale accumulation and subdued fee activity could weaken the breakout case. Additionally, the price action has respected the descending structure, with the resistance still intact. Therefore, unless ETH decisively reclaims $1,703 and reactivates on-chain demand, the $2,330 wall is likely to hold firm. For now.