Ethereum Rally Faces Pressure After $970 Million in Whale Selling

Ethereum (ETH) held above $3,000 on Tuesday, but its rally faces headwinds after a major whale sold $44.3 million worth of ETH for Bitcoin. The move followed a four-year holding period and marked one of the largest single-asset swaps of 2025.

Whale activity has been a key indicator of market sentiment, with data showing a decline in the 30-day change for large Ethereum holders. This suggests reduced confidence in near-term price gains.

At the same time, Ethereum spot ETFs recorded net outflows of $72 million in 2025. The lack of institutional support has limited liquidity and made it harder for ETH to sustain an upward move without a strong catalyst.

Why Did This Happen?

The Ethereum whale's sale of 14,145 WETH for 492 WBTC reflects a strategic rebalancing of assets. The swap occurred at a price of $90,014 per Bitcoin and was executed on decentralized platforms using wrapped tokens.

Large investors often shift positions to manage risk or take profits. In this case, the whale had accumulated Ethereum at an average cost of $2,916 per ETH. The decision to convert part of the position into Bitcoin could indicate a shift in conviction or a tactical move based on macroeconomic factors.

The broader market context includes Ethereum's ongoing upgrades to its proof-of-stake consensus mechanism and Bitcoin's emergence as an institutional reserve asset.

How Did Markets React?

Ethereum's price action remains constrained within a descending wedge pattern. A breakout above $3,131 would be needed to attract fresh buyers and move toward the $4,000 target.

Price data shows that approximately 2.83 million ETH were accumulated between $3,151 and $3,172. This zone acts as a key resistance level, as many holders may sell to break even once ETH approaches it.

Despite these challenges, Ethereum ETFs remain on the demand side with cumulative net inflows of $12.67 billion and net assets of nearly $20 billion. However, inflows have shrunk slightly to $168 million on Monday from $174 million on Friday.

What Are Analysts Watching Next?

Analysts are closely monitoring Ethereum's ability to break past $3,131 and sustain momentum toward $4,000. A sustained move above this level would signal renewed institutional confidence and reduce bearish sentiment.

Bitcoin's strong ETF inflows—$697 million on Monday and $471 million on Friday—suggest continued institutional demand. With cumulative net inflows of $57.78 billion and net assets of $123.52 billion, Bitcoin's recovery remains supported.

The broader crypto market is also watching for signs of a tokenization supercycle. Bernstein analysts expect stablecoin supply to grow 56 percent in 2026, driven by B2B payments and agentic payments.

Ethereum's success will depend on both macro conditions and whale behavior. If large holders continue to reduce exposure, it could add to selling pressure. On the other hand, renewed ETF inflows could provide the necessary liquidity to break through key resistance levels.

Retail and institutional investors are also watching for a potential shift in the BTC/ETH ratio. A large-scale reallocation from Ethereum to Bitcoin could influence sentiment and prompt other investors to reevaluate their own allocations.