• 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?

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.

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.

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.

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.