Ethereum News Today: Ethereum's Wall of Doubt: Whales Buy as Traders Sell, Stalling Price Momentum

A whale sold 4,708 ETH, purchased two months ago, for a $2.67 million loss, highlighting renewed uncertainty in Ethereum's price trajectory despite significant whale accumulation. The transaction, which occurred amid a broader market backdrop of mixed signals, underscores the delicate balance between large institutional demand and short-term trader sentiment, according to a Yahoo Finance report.

Ethereum's price has stagnated near $3,875, down 3.7% this week, with on-chain data revealing a $660 million influx into whale wallets between October 21 and October 23. This accumulation, lifting whale holdings to 100.47 million ETH, contrasts with a simultaneous exodus by short-term holders. According to HODL Waves, cohorts holding ETH for less than a month reduced their combined supply share by nearly 1.3% during the same period, a divergence that has created a "wall of doubt," trapping ETH in a narrow range and stalling price momentum.

Technical indicators, however, suggest lingering bullish potential. Ethereum's daily chart shows a bullish divergence between its price lows and the Relative Strength Index (RSI), a sign that selling pressure may be waning, a point also noted in the Yahoo Finance piece. The asset is also trading within an ascending triangle pattern, historically a precursor to upward breaks. Key resistance levels at $3,989 and $4,137 align with Fibonacci retracement levels, offering critical thresholds for a potential rebound.

The whale-driven dynamics observed in Ethereum contrast with broader market trends in Bitcoin, where large holders often temper rallies rather than drive them. A 2025 Cointelegraph analysis revealed that "mega-whales" frequently sell during strength, particularly when smaller traders are accumulating. Off-exchange activity further dilutes the visible impact of individual whale wallets, as seen in a recent case where a notable "OG" whale sold thousands of BTC to purchase $4 billion in ETH, an example discussed in that analysis.

Market volatility remains tied to external factors, including ETF flows and liquidity conditions. Since January 2024, Bitcoin's price has closely tracked weekly ETF inflows, with strong flows correlating to record highs, and centralized exchange balances for Bitcoin have hit six-year lows at 2.83 million BTC, amplifying price swings as routine trades cut deeper into the order book, as noted in the Cointelegraph piece.

For Ethereum, the interplay between whale accumulation and short-term selling highlights a market at a crossroads. While technical indicators hint at a potential breakout, the lack of broad-based confidence among smaller holders suggests that any rebound may remain fragile. As the crypto market navigates macroeconomic headwinds and shifting institutional strategies, the actions of whales—and the skepticism they face—will continue to shape Ethereum's path forward.