Ethereum Whales Move $159 Million Amid 4.8% Price Drop

A recent transaction involving an Ethereum whale has raised eyebrows in the cryptocurrency community. The whale moved a substantial $159 million in a single transfer, sparking speculation about potential market movements. This event comes at a time when Ethereum's price has been experiencing volatility, having declined by 4.8% in the last 24 hours to around $2,480. This drop follows a significant 7.34% sell-off on June 5, which coincided with broader market uncertainty, causing Ethereum to lose its $2,400 support level for the first time in over two weeks.

The recent whale activity is part of a broader trend where Ethereum's price and whale behavior have been moving in opposite directions. Since February, the number of whale wallets holding over 1,000 ETH has surged sharply, even as the price of Ethereum plummeted from $2,700 to $1,440 by mid-April. This trend suggests that many whales have been holding onto significant unrealized losses throughout the first and second quarters of the year. However, when Ethereum rallied by 50% in May, reaching back up to $2,700, the number of whales began to slow down. This indicates that many whales have started to hit their breakeven points, leading to a tapering off of accumulation.

While these signals don’t yet point to a full-blown capitulation, they mark the opening act of a potential sell-off. As profit margins erode, smart-money whales may start to lose conviction. That recent $159 million whale transfer? Think of it as the first move in a possible larger unwind. Thus, to avoid a repeat of the steep February-style downturn, maintaining critical support levels is essential. Encouragingly, ETH ETFs continue to attract inflows, maintaining a steady month-long streak that underscores resilient institutional demand. Meanwhile, the ETH/BTC ratio remains locked in a narrow range, reflecting indecision, but it’s notably more resilient compared to the sharp breakdown seen in the previous cycle.

Taken together, this suggests Ethereum bulls are carefully strategizing momentum to keep smart money locked in for the long haul. If the critical $2,350 support level holds firm, whales are likely to maintain their positions, fueled by FOMO in an impending breakout. However, a decisive break below $2,350 could trigger a broader unwind, unleashing cascading sell pressure and potentially accelerating a market correction. The cryptocurrency community will be closely watching these developments to gauge the potential impact on Ethereum's price and the broader market.