Ethereum (ETH) faces mounting pressure as whales begin cashing in profits at levels not seen since 2021. Despite the Federal Reserve’s recent 25 basis point rate cut, a combination of ETF outflows, bearish Wall Street outlooks, and whale movements could create strong headwinds against ETH breaking through the psychological barrier of $5,000.
Whales Hit Record Unrealized Profits
According to CryptoQuant, unrealized profits of Ethereum whales holding between 10,000 and 100,000 ETH have now reached the same levels as during the peak of the 2021 bull cycle.
Historically, these profit levels have often triggered profit-taking and increased sell pressure. In addition, long-term holders have been quietly trimming their positions in recent months, adding to the risk of correction.
ETF Outflows Show Institutions and Whales Are Selling
Despite a friendlier macro environment and Fed easing, Ethereum spot ETFs have seen fresh withdrawals. On Wednesday alone, there was a net outflow of $1.89 million.
🔹 Fidelity FETH reported $29.19 million in outflows
🔹 Bitwise ETH lost $9.7 million
Adding to the concerns, one whale transferred 5,000 ETH (worth $22.84 million) to Binance, pocketing a profit of $5.08 million.
Wall Street Split: Citigroup Bets on Two Scenarios
Analysts at Citigroup predict ETH could close the year around $4,300, but they also warn of a potential drop to $2,200 in a bearish scenario. According to the bank, ETH’s current rally above $4,500 is being fueled more by short-term macro tailwinds than by strong fundamentals.
Technical Analysis: Risk of a Drop to $4,000
Technical indicators suggest ETH may face a tough battle to maintain momentum:
Ted Pillows notes Ethereum has yet to break the resistance at $4,700. Failure to do so could open the door to a correction back to $4,000.
Ali Martinez pointed out that the TD Sequential indicator has issued a sell signal. He predicts ETH could fall back to $4,570.
Current Price and Market Mood
Ethereum has gained +2% in the past 24 hours and is currently trading near $4,600.
🔹 24h Low: $4,429
🔹 24h High: $4,643
🔹 Trading Volume: +28%
Despite the short-term upside, nerves remain high. If whales accelerate profit-taking and ETF outflows continue, the road to $5,000 could be far more complicated than bulls would like.
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