Ethereum News Today: Ethereum's $77M Whale Short Bets Clash with Retail 'Wall of Doubt'

A major Ethereum whale has initiated a short position at $4,914.9, signaling a strategic move to capitalize on potential price volatility in the digital asset. According to crypto analyst Aiyi, the whale-identified as having purchased ETH 25 times more than its pre-October 11 flash crash holdings-has established multi-billion-dollar take-profit orders between $4,190 and $4,914.9. If Ethereum breaches the $4,914.9 threshold, the whale plans to gradually deploy short positions, with a maximum exposure of 14,024.37 ETH (worth approximately $77.91 million) anticipated should the price climb to $5,555.5, according to CoinLive.

This activity occurs amid broader market dynamics where Ethereum whales have recently accumulated roughly $660 million worth of ETH over a 48-hour period, according to Yahoo Finance. Between October 21 and October 23, large wallets added 170,000 ETH, increasing their total holdings to 100.47 million ETH. However, short-term holders-those with 24-hour, 1-day–1-week, and 1-week–1-month holding periods-have reduced their collective supply shares since mid-October, creating a "wall of doubt" that has constrained ETH's price movement. While whale demand suggests potential for a rebound, smaller investors continue selling during rallies, keeping ETH in a narrow trading range near $3,875.

Technical indicators remain cautiously optimistic. Ethereum's price has formed a bullish divergence on the daily chart, with lower lows and higher RSI levels since September 25, suggesting weakening selling pressure. The asset is also trading within an ascending triangle pattern, a formation typically resolved upward once resistance is overcome. Key price levels to monitor include $3,989 and $4,137, which align with Fibonacci retracement targets. Analysts note that a breakout above these thresholds could validate the bullish case, but confirmation remains pending, as noted in that Yahoo Finance analysis.

The interplay between whale activity and short-term selling highlights the market's fragility. While institutional-level buyers are accumulating ETH, retail traders' cautious behavior underscores lingering uncertainty. For Ethereum to break free of its current range, broader investor confidence must align with whale-driven momentum. Until then, the market remains in a delicate balance, with both technical and on-chain signals pointing to a potential turning point but requiring further validation.