Ethereum faced downward pressure on Monday as broader market uncertainty in both cryptocurrencies and equities continued. This price decline was exacerbated by a major whale making a sizable withdrawal, suffering substantial losses in the process.
Ethereum’s price fell to around $2,400, reflecting a significant retreat from its recent monthly peak of $2,732. The sell-off caused Ethereum’s total market capitalization to decrease dramatically, losing approximately $35 billion — falling from roughly $325 billion on May 14 to approximately $289 billion.
Much of this downward momentum stemmed from an individual large-scale investor, commonly known as a whale, who decided to exit a position at a notable loss. Blockchain tracking shows that this investor liquidated 7,000 ETH, equivalent to about $16.8 million, realizing a substantial financial loss. This particular investor had previously withdrawn another 13,479 ETH (valued at $48.82 million at that time) between early December and mid-January. Currently, the address holds 6,479 ETH and has accumulated an overall realized loss of approximately $16.28 million.
Despite this bearish episode, Ethereum’s overall market fundamentals suggest the possibility of a forthcoming rebound. On-chain analytics reveal an ongoing trend where investors are moving ETH from centralized exchanges to private, self-custodied wallets—a typical indication that token holders are inclined towards longer-term holding rather than immediate selling. According to recent data, exchange-held ETH balances decreased by 3.46% on Monday, reaching a total of about 23.47 million tokens. The proportion of Ethereum’s total circulating supply currently held on exchanges has fallen around 19.45%, generally regarded as a bullish indicator due to reduced selling pressure.
Moreover, the Ethereum network continues to attract significant institutional activity despite challenging market conditions. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has seen sustained growth in assets under management, climbing significantly to approximately $2.9 billion from just $640 million at the start of the year. The rise in institutional adoption underscores Ethereum’s long-term attractiveness and potential buoyancy amid short-term market volatility.
From a technical analysis perspective, Ethereum’s chart indicates resilience. After bottoming out in April at $1,380 and rallying strongly to $2,732 last week, ETH experienced a retracement as investors locked in profits. The coin remains above key moving averages, specifically the 50-day and 100-day exponential moving averages (EMAs), which are close to forming a potentially significant bullish crossover called a mini golden cross.
The recent pullback can be technically explained by resistance encountered at the 50% Fibonacci retracement level, signalling the potential beginning of another bullish phase as part of a broader Elliott Wave pattern. If Ethereum maintains support above the psychologically critical $2,000 price level, it could eventually move towards the next significant Fibonacci target, approximately $3,527, suggesting considerable upside potential.
However, any breakdown below the crucial $2,000 support level could diminish investors’ confidence and invalidate the current bullish outlook, potentially indicating further weakness in the short-term horizon.
