Ethereum Plummets 8% as Whale Sells $12M in ETH

A significant sell-off in Ethereum occurred after a major whale transferred 5,000 ETH, valued at approximately $12 million, to Binance. This sudden movement triggered alarm among analysts who interpreted it as a potential capitulation signal. Blockchain tracker Lookonchain shared the on-chain data, highlighting the whale's abrupt transfer that coincided with a sharp decline in ETH’s price earlier in the day. Such large, unexpected wallet movements often precede heavy sell-offs.

The key transaction took place just before ETH's price dropped to as low as $2,240. The seller reportedly retains around $12 million in ETH at the time of reporting. While whale offloading is not uncommon, the timing and scale of this transaction made it particularly noteworthy. The sell-off catalyzed around $300 million in liquidations across Ethereum derivatives in the past 24 hours, aligning with an 8% fall in ETH’s price this week, marking it among the worst performers by market capitalization. Crypto markets absorbed $712 million in liquidations during the same period.

During this sell-off, Bitcoin dominance rose sharply. As Ethereum sold off, BTC held steady, underscoring its status as a relative safe haven amid market distress. The ETH/BTC ratio remains above 0.017, but the shift highlights capital rotation toward Bitcoin. This bearish whale action comes alongside record highs in Ethereum derivatives. ETH futures open interest now tops $20 billion, marking an all-time high leveraged by traders using stablecoin-based contracts. Analysts note that such leverage increases vulnerability—sharp price moves can trigger cascading liquidations.

Crypto trader “Credible Crypto” flagged $2,240 as a critical support level; breaking below could prompt a slide toward $2,000–2,100. Ethereum’s next support lies near the low-$2,200s range. A bounce may require robust uptake in spot ETF inflows or institutional accumulation, neither of which has outweighed this wave of liquidations yet. It’s not the first time whale behavior has triggered concern. A 48,825 ETH purchase (~$127 million) was identified, suggesting a contrast between profit-taking and accumulation points in time. The latest transfer, however, aligns more with panic-driven selling.

On-chain sadness and fear may be setting in. But several established whales continue building positions—as many analysts suggested accumulation during pullbacks reflects longer-term confidence. Still, this 5,000 ETH transfer and active liquidations emphasize how leverage can amplify a sell move. With futures leverage at record highs and whales fleeing, ETH faces short-term downside risk. But whales also load up during price dips—creating volatility both ways. Traders need to monitor exchange inflows and outflows, futures liquidations, and BTC ratio for clues.