Ethereum whales recently sold 143,000 ETH, reflecting market caution amidst price pressures. Notable sell-offs from major holders like Galaxy Digital, combined with concerns regarding ETF outflows, have led to stagnant prices around $1,600. Despite recent losses, some buying activity suggests a potential for recovery. Future upgrades aim to enhance demand and network functionality.
In the previous week, Ethereum whales sold a total of 143,000 ETH tokens, marking a significant shift in market dynamics that has grabbed the attention of traders and investors alike. This sell-off indicates growing concerns regarding Ethereum’s near-term price trajectory amid increasing market pressures.
Data from Lookonchain shows that Ethereum holders, including those from Galaxy Digital, have transferred ETH to exchanges such as Binance and Coinbase. Notably, Galaxy Digital alone accounted for nearly 50,000 ETH, valued at around $79 million. The total sell-off from whales amounted to approximately $230 million, signifying a coordinated exit by major investors.
The actions of these whales have prompted smaller investors to also liquidate their holdings, often at a loss, reflecting a sentiment of caution. Consequently, the Ethereum price has stagnated around $1,600, attributed to market outflows and ETF withdrawals in the U.S.
Despite experiencing a 15.95% decline over the last month, Ethereum has shown a minor recovery, trading near $1,639. An increase in trading volume indicates active participation, suggesting that some buyers are entering the market. However, a prevailing cautious sentiment still looms.
Crypto expert Ali Martinez’s analysis illustrates the scale of market activity and its implications for Ethereum. Traders are closely monitoring the situation for potential rebounds or further declines, as technical indicators signal a crucial support level, underscoring the uncertainty surrounding the current price actions.
Investor behaviour towards Ethereum reflects a notable trend of caution. Key holders have begun transferring ETH into derivative markets, possibly hedging or expecting further price declines. Recent outflows of $12.1 million from Ethereum ETFs highlight the prevailing risk aversion within the market, indicative of preparation for upcoming volatility amid economic uncertainties.
In addition, Ethereum’s Pectra upgrade set for May 7, 2025, is expected to introduce significant enhancements including increased layer 2 throughput and the ability to pay gas fees using stablecoins like USDC. Furthermore, the staking cap will rise from 32 to 2,048 ETH, promoting institutional engagement and potentially mitigating network congestion, all aimed at revitalising Ethereum’s momentum in the market.
