Ethereum Whale Activity and Market Outlook

Ethereum whales have recently continued offloading their holdings, contributing to a drop in ETH price, which struggles to break past the $3,500 mark, stalling further price rallies. Investor caution is evident as Ethereum’s supply is now nearing pre-Merge levels, while price action remains under pressure.

Ethereum Whale Losses

In a significant move, Ethereum whales have been selling ETH at a loss. Three wallets, possibly controlled by the same entity, sold 10,070 ETH for 33 million DAI at an average price of $3,280 per ETH, incurring a $1 million loss. These whales had withdrawn a total of 24,029 ETH from Binance just weeks ago, but they now hold 13,959 ETH, worth approximately $45.48 million across 10 wallets.

Simultaneously, Tron founder Justin Sun has been depositing large amounts of ETH, totaling 323,591 ETH ($1.124 billion) to HTX since November, further indicating significant whale activity in the market.

ETH Supply Dynamics

Popular crypto analyst Benjamin Cowen noted that Ethereum’s supply is rapidly approaching pre-Merge levels, with the current monthly supply now reaching 45,000 ETH—just 32,000 ETH away from the pre-Merge levels. Despite an initial increase in demand after rate cuts, Ethereum’s supply has remained inflationary for the past 10 months, contradicting the deflationary trends that were expected post-Merge.

Ethereum Price Action and Market Sentiment

Currently, Ethereum is facing downward pressure, with its price falling 2.6% in the past 24 hours, trading at $3,186.04. The market cap stands at $383 billion. Ali Martinez, a crypto analyst, identified key resistance levels between $3,360 and $3,450 and support zones between $3,066 and $3,160.

Despite recent sell-offs by whales, analysts remain relatively bullish on Ethereum’s long-term prospects. Analyst Altcoin Sherpa suggests Ethereum might be following a familiar market cycle:

• Red Zone: Indicating liquidations.

• Yellow Zone: A sharp “V-shaped” recovery followed by a lower high on lower timeframes (LTF).