Recent significant movements by large Ethereum (ETH) holders, commonly known as whales, are signaling a cautious outlook for the cryptocurrency's price. These major players have been observed offloading substantial ETH holdings and opening leveraged short positions, actions that typically precede or coincide with price declines. This activity is drawing close attention from traders and investors, who are now monitoring key support and resistance levels.
Whale Activity Fuels Bearish Sentiment
A notable surge in bearish whale activity has been identified, contributing to a weakening sentiment surrounding Ethereum. One prominent whale wallet deposited 7,500 ETH, valued at over $32 million, into Binance, appearing to take profits after having acquired a larger sum at a lower average price. Simultaneously, another whale deployed 3.25 million USDC on Hyperliquid to open highly leveraged (25x) short positions on ETH, betting on a price drop. These coordinated moves highlight a strong belief among some large investors that Ethereum's price is vulnerable to a downside correction in the near term.
Critical Price Levels and Technical Outlook
Amidst this whale activity, Ethereum's price has shown initial signs of weakness, slipping by over 1% and triggering an 11% surge in 24-hour trading volume as market participants react. Technically, ETH is hovering near the base of a descending triangle on the four-hour chart. The 9-day Exponential Moving Average (EMA) has crossed below the 15-day EMA, a bearish signal that has historically preceded price declines for ETH. Traders are closely watching the $4,260 level; a decisive break below this point could activate further downside momentum, potentially pushing ETH below $4,000. Conversely, a breakout above the descending trendline resistance and the $4,415 hurdle could invalidate the bearish outlook and propel ETH towards $4,865.
