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In a move that has shaken Ethereum’s investor sentiment, a long-term whale recently sold 10,000 ETH—valued at $15.71 million—after holding the asset for over 900 days. Acquired during the 2022 bear market at $1,295, the whale witnessed ETH’s rally past $4,000 but opted to exit at an average price of $1,571 amid the current downturn. This rare capitulation underscores a growing sense of caution among large holders, reinforcing bearish signals across the ETH market.
Adding to the concerns, Ethereum’s exchange reserves have dropped by 9.03% in the past 24 hours, currently standing at $26.63 billion. While falling reserves traditionally suggest decreased selling pressure, the concurrent whale sell-off hints at a more complex narrative. The shift of assets off centralized exchanges could point to strategic repositioning—possibly toward decentralized platforms for leveraged trades or stealth exits—raising doubts about a bullish interpretation.
Price action reflects the weight of this uncertainty. At press time, ETH was trading at $1,474.01, down 6.12% in 24 hours. After breaching a key demand zone at $1,828, Ethereum now teeters just above critical support at $1,392. With the token locked in a descending channel of lower highs and lows, failure to hold the current level could trigger a sharp cascade toward even lower targets.
Network fundamentals are also deteriorating. Daily network growth has plunged to 32.1K, signaling waning interest from new participants. Meanwhile, Ethereum’s NVT ratio has spiked to 133.71—suggesting ETH is overvalued relative to on-chain transaction volume. Historically, such disconnections between price and utility have preceded major corrections.
Liquidation data further complicates the outlook. The Binance ETH/USDT heatmap reveals a dense cluster of liquidation zones between $1,500 and $1,600. The recent breach of $1,500 triggered a wave of long position liquidations, with the next major resistance stacked heavily overhead.
In summary, Ethereum appears to be entering a deeper corrective phase. Whale exits, weakening on-chain metrics, and elevated liquidation risk point to sustained bearish momentum—unless a strong bullish catalyst emerges soon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
