Ethereum Risks 25% Price Drop as “Massive Whale’”Moves $237m in ETH to Exchanges
Key takeaways:
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Ethereum risks a 25% drop toward $1,600 after failing to break above a multi-year technical resistance.
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A whale moved over $237 million in ETH to exchanges, aligning with rising ETH inflows into Binance over five straight days.
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Wallet data suggests large ETH holders are redistributing or offloading, adding to bearish pressure.
Ethereum’s native token, Ether (ETH), is showing signs of vulnerability after breaking below a key multi-year support level, just as a major whale appears to be dumping hundreds of millions of dollars worth of ETH.
Technical breakdown puts $1,600 ETH target in play
On the two-week chart, Ether has slipped below the lower trendline of a symmetrical triangle that had held firm since mid-2022.
In March, the 200-period exponential moving average (200-period EMA; the blue wave) near $1,600 provided a temporary bounce, but the recovery stalled after hitting the 50-period EMA (the blue wave) around $2,545.
The 50-period EMA aligns with the triangle’s lower trendline, forming a resistance confluence that ETH bulls have repeatedly failed to overcome in recent months, including June.
Other indicators of bearish pressure include Ethereum’s relative strength index (RSI), which remains below a multi-year descending trendline.
Despite recent price rebounds, the RSI has failed to break above the trendline resistance, indicating waning bullish momentum, reinforcing the likelihood of continued downside.
ETH risks returning toward its 200-period EMA near $1,600 if this resistance confluence, marking a potential 25% slide from current levels.
ETH whale wallets dump amid stalled recovery
Ethereum’s onchain data further highlights the risk of ETH price declines in the coming weeks.
Earlier in June, two Ethereum wallets, 0x14e4 and 0x26Bb, unstaked and withdrew 95,920 ETH (~$237 million), according to Etherscan.
Of that, 62,289 ETH (~$154 million) has already been deposited to exchanges including HTX, Bybit, and OKX in the past 20 days. The remaining 33,631 ETH (~$83 million) still sits in the whale’s address, potentially ready to be sold.
Data resource Lookonchain considers that the wallets are controlled by a single “massive whale” entity.
Binance sees ETH inflows for five days straight
The whale’s large ETH transfers to exchanges align with a recent CryptoQuant report.
It shows Ethereum inflows into Binance, the world’s largest crypto exchange by volume, have persisted for five consecutive days.
Glassnode data reveals further bearish undercurrents.
The ETH supply held by addresses with 10,000–100,000 ETH has declined sharply since mid-May, while the 1,000–10,000 ETH cohort has seen a parallel rise.
This indicates that large holders are either breaking up their wallets into smaller chunks or distributing ETH to new, possibly offloading, addresses, thus raising the cryptocurrency’s downside bias.
Ethereum analyst: Rally to $4,000 “a matter of time”
Ether’s bearish outlook contrasts with a broader upside sentiment across the market.
Related: Ethereum set for rally as it holds above crucial $2.4K price: Analyst
Analyst Agela notes that Ether’s breakout above its weekly RSI resistance, as discussed above, is only a “matter of time.“
“This’ll be the catalyst for price appreciation,” he wrote, adding:
“Since Q1 2024, ETH weekly RSI has made lower lows, and this is why ETH hasn’t been able to reclaim $4,000.”
Other analysts further predict that the Ether price will rally toward $10,000 due to supportive technical indicators and persistent capital flows into ETH-focused investment funds.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
