Ethereum Whales Dump 143K ETH as Price Nears $1,528 Support

Ethereum (ETH) price traded below $1,600 on Thursday, dipping 1% during the early Asian session, as whale-driven sell pressure mounted and on-chain metrics signaled a retest of critical support levels.

Ali Martinez from IntoTheBlock reported that Ethereum whales offloaded over 143,000 ETH in the past seven days. The selling spree aligns with growing concerns over ETH’s value accrual model and its inability to capture fees after the March 2024 Dencun upgrade.

“$1,528.50 is a key support level,” Martinez noted, adding that over 2.61 million addresses had accumulated around 4.82 million ETH at that price. If broken, the zone could trigger further downside volatility.

Dencun Trade-Off Hits ETH’s “Ultrasound” Narrative

Ethereum’s recent Dencun upgrade accelerated data availability across Layer-2 chains. According to Binance Research, scalability improved by 15.95x. However, the upgrade slashed Layer-1 (L1) fee accrual, weakening ETH’s utility as a revenue-generating asset.

L2s now settle for a fraction of what they previously paid on L1, the report added. As a result, ETH’s narrative as “ultrasound money,” based on burned gas fees, has lost ground to faster rivals like Solana and BNB Chain.

Some Ethereum developers proposed increasing blob fees to support L1 earnings. However, Binance analysts warned that Layer-2 networks could migrate to cheaper alternatives like Celestia or EigenLayer if minimum blob costs rise.

“L2s are rational businesses,” the report stated, suggesting a price-sensitive dynamic that could fragment the Ethereum ecosystem further.

ETH Price Approaches Historic Buy Zone as Sentiment Weakens

Market participants are watching closely as ETH approaches its realized price—a level historically associated with macro bottoms. Analyst Abramchart highlighted that each major Ethereum bull cycle started near or below the lower Bollinger Band, which ETH is now approaching.

“If the trend continues downward, it could signal deep-value accumulation,” abramchart noted. However, they cautioned that a clean break below the band could confirm further weakness.

As ETH trades closer to or below this metric, sentiment often turns neutral or bearish—setting the stage for potential recovery or capitulation.

ETH Price Caution Urged Amid “Buy the Dip” Fatigue

Short-term traders remain on edge. IncomeSharks, a well-followed X account, shared personal losses from mistimed entries.

“A good example why taking profits is important,” they wrote. “Buying every dip doesn’t always work.”

The comment reflects broader market fatigue after multiple failed bounces, as ETH bulls struggle to maintain momentum. Volume has dried up on most exchanges, and speculative buying has cooled.

That said, historical data favors patient accumulation during these drawdowns—provided prices hold near key zones like $1,528. Any breach below could alter the trend structure entirely.

ETH Holds Line, But Eyes on May Upgrade

Ethereum still outpaces competitors in network security, maintaining over 1 million validators—far ahead of Celestia (100) and EigenDA (170). But the debate around value accrual remains unresolved.

Binance Research flagged “based rollups” as a possible solution. Taiko, one such rollup, contributed more L1 fees to Ethereum than the top three L2s combined over the past year. Yet, upcoming upgrades—Pectra and Fusaka—do not prioritize this model, which may delay resolution.

Ethereum’s next major protocol change is expected on May 7, with another slated for Q4. Whether these updates address current economic concerns remains unclear.

Ethereum’s price action, on-chain behavior, and structural limitations converge at a pivotal moment. While historical indicators hint at a potential long-term bottom, whale exits and waning fee capture paint a cautious picture.

The coming weeks will likely determine whether $1,528 holds or gives way to further downside. For long-term holders, the zone represents a traditional buy area. For short-term traders, volatility may just be getting started.