Ethereum whale moves $159M in 1 mysterious transfer – Dump incoming?

• Ethereum whales have been accumulating during price declines but are now slowing down.
• Institutional inflows and ETH/BTC ratio resilience provided cautious optimism.

A recent Ethereum [ETH] whale transaction has sparked concern in the crypto community. 

Ethereum’s price was around $2,480 at press time, reflecting a 4.8% decline over the last 24 hours.

This drop followed a massive 7.34% sell-off on the 5th of June, coinciding with broad market FUD that caused ETH to lose its $2,400 support level for the first time in over two weeks.

Given this context, is a massive dump on the horizon?

Unpacking the paradox

AMBCrypto has spotted a fascinating trend: Ethereum’s price and whale activity are moving in opposite directions. 

Since February, the number of whale wallets (those holding over 1,000 ETH) has surged sharply. Meanwhile, ETH price plunged from $2,700 all the way down to $1,440 by mid-April.

Source: Glassnode

So, these whales have basically been sitting on some big unrealized losses through most of Q1 and Q2.

But when ETH bounced back strongly in May with a 50% rally, getting back up to $2,700, the number of whales started to slow down. It means whale accumulation began to taper off, signaling many hitting breakeven.

From a peak of 4,953 wallets in early May, the count dipped a little to 4,914, which lines up with ETH trading sideways between $2,300 and $2,500.

This price action has effectively created a strong resistance around the $2,700 ceiling.

Profits bleeding: Ethereum whales on the edge

While these signals don’t yet point to a full-blown capitulation, they mark the opening act of a potential sell-off. 

As profit margins erode, smart-money whales may start to lose conviction. That recent $159 million whale transfer? Think of it as the first move in a possible larger unwind.

Thus, to avoid a repeat of the steep February-style downturn, maintaining critical support levels is essential. 

Encouragingly, ETH ETFs continue to attract inflows, maintaining a steady month-long streak that underscores resilient institutional demand. 

Meanwhile, the ETH/BTC ratio remains locked in a narrow range, reflecting indecision, but it’s notably more resilient compared to the sharp breakdown seen in the previous cycle.

Source: TradingView (ETH/BTC)

Taken together, this suggests Ethereum bulls are carefully strategizing momentum to keep smart money locked in for the long haul. 

If the critical $2,350 support level holds firm, whales are likely to maintain their positions, fueled by FOMO in an impending breakout. 

However, a decisive break below $2,350 could trigger a broader unwind, unleashing cascading sell pressure and potentially accelerating a market correction.