- Ethereum whales are selling off large holdings as prices bounce, raising concerns about sustained upward momentum.
- However, analysts see this capitulation as a potential buying opportunity amid bullish technical patterns and ETF-related optimism.
Ethereum is back in the spotlight this week after a dormant whale moved a staggering 10,702 ETH — worth $16.86 million — following two years of silence. The timing has sparked debate across the crypto community: is this a warning of further sell-offs, or the start of a bullish reversal?
The whale’s exit comes as ETH recovers from its recent tumble, rebounding 13% from a low of $1,400 to trade around $1,612. Despite this bounce, long-term holders appear to be embracing a “sell-the-rise” strategy, dumping large volumes into the market. This wave of capitulation, which spans the last three days, contrasts sharply with behavior during Ethereum’s previous all-time highs above $4,000.
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Some market observers are interpreting these moves as a red flag. However, not everyone is convinced it’s time to panic. Crypto analyst Ali Martinez sees opportunity in the fear. He suggests the current selling pressure from seasoned holders could be an ideal entry point for contrarian investors. “Capitulation is often the soil in which new rallies are planted,” he said, pointing to the favorable risk-reward setup forming amid the sell-off.
Adding to the intrigue is the chart setup. Analysts like Luciano_BTC highlight that ETH is showing signs of forming a classic falling wedge pattern — a technical formation historically linked to bullish breakouts. If Ethereum breaks above the wedge resistance, it could signal a significant trend reversal.
Supporting this bullish narrative, the recent approval of options trading for spot Ether ETFs by the U.S. SEC could attract fresh institutional interest, potentially boosting demand.
While short-term whale activity has spooked retail investors, the technical and regulatory landscape suggests there may be more to this rebound than a dead-cat bounce. Whether ETH can sustain its upward momentum remains to be seen, but for now, all eyes are on the charts — and the wallets of crypto’s largest players.
