Ethereum Price Rally Threatened by $970M in Whale-Driven Sell-Offs

TLDR

• Ethereum price broke out of a two-month descending wedge and traded around $3,265.
• Large holders sold approximately 300,000 ETH, valued at over $970 million, within three days.
• Whale selling began as the price pushed higher, creating supply pressure during the breakout.
• Long-term holders continued to hold their positions, as shown by the declining Liveliness metric.
• This long-term holding behavior has helped reduce available supply and stabilize market sentiment.

Ethereum price broke out from a two-month descending wedge and traded near $3,265, but immediate resistance capped further gains. Large holders sold $971 million in ETH over three days, creating short-term pressure during the rally. While long-term holders showed confidence, whales’ exit strategy has complicated Ethereum’s bullish path.

Whale Distribution Raises Concerns Despite Breakout

Ethereum price surged past its wedge resistance, indicating bullish momentum after two months of consolidation and low volatility levels. However, as price approached $3,287, selling pressure increased due to large holders unloading their tokens into strength. This supply surge impacted market sentiment, slowing Ethereum’s upside progression.

Whales holding 100,000 to 1 million ETH sold nearly 300,000 ETH in three days, equivalent to over $970 million at current prices. Their distribution began shortly after the breakout confirmation, suggesting skepticism toward sustained upside. Such activity increases available supply, challenging buyers to absorb the pressure and hold key levels.

According to on-chain data, “Large holders distributed into rally strength, potentially limiting Ethereum’s near-term upside,” said a market analyst. Whale transactions influence liquidity conditions quickly and often trigger price adjustments when repeated. Therefore, their behavior now presents a risk for Ethereum’s current trend continuation.

Long-Term Holders Offer Support Against Downside Risk

While large wallets sold heavily, long-term holders appeared to do the opposite by maintaining their positions since late December 2025. Ethereum’s Liveliness metric dropped during this time, which reflects long-held coins remaining dormant. This trend has reduced circulating supply and added potential support for current price levels.

As long-term holders avoid selling, Ethereum price volatility decreases, strengthening the bullish structure and maintaining confidence in the uptrend. Their behavior counterbalances short-term distribution and provides relief to market participants. Holding patterns among these cohorts can mitigate the impact of whale exits on broader sentiment.

Analysts observed that “Persistent inactivity from older wallets may reinforce Ethereum’s stability throughout distribution periods,” supporting Ethereum’s price structure. Though not an immediate reversal signal, this trend may limit downside pressure as long-term conviction sustains. These holders often reflect broader belief in Ethereum’s future value and may help anchor price action.

Ethereum Price Targets $3,447 but Faces Key Levels

Ethereum price confirmed a breakout and traded around $3,265, eyeing a move toward $3,447 if it secures support at $3,287. This level acts as a key validation zone and could set the base for another move toward $3,607. A sustained hold here would confirm breakout strength and continued bullish momentum.

Technical projections from the pattern suggest a 29.5% potential rally, which places Ethereum near $4,061 if momentum persists. However, achieving this requires limited distribution and continuous demand from other market participants. Without this support, the pattern could fail, especially under increasing supply.

On the downside, if ETH breaks below $3,131, the price risks falling toward $3,000 or even $2,902. This move would invalidate the bullish breakout and expose Ethereum to a wider correction phase. For now, Ethereum trades at $3,265 with support retests ongoing.

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