Key Highlights
- Major whale wallet transferred 244K ETH to Binance across a three-day period, creating downward price pressure
- US-based spot Ethereum ETFs experienced $103.5 million in capital withdrawals, breaking a four-day positive streak
- Institutional investors have shown preference for Bitcoin allocations over Ethereum since February’s market low
- Erik Voorhees-associated wallet acquired 2,920 ETH valued at $6.67 million USDT amid price weakness
- ETH price action remains confined between $2,197 floor and $2,389 ceiling, with $3,000 representing major upside objective
Ethereum’s price hovers around $2,290 on Friday, retreating from earlier week peaks as significant whale distribution activity and declining ETF interest apply downward pressure.
A substantial whale wallet with connections to Bitcoin OG Garrett Jin deposited 78K ETH onto Binance exchange Friday. This came after a 166K ETH movement on Wednesday, totaling a potential 244K ETH liquidation over three consecutive days.
The distribution timing correlates with ETH’s approximately 6% decline, sliding from $2,423 down to $2,277 during the identical timeframe.
Jin has established credibility for market timing, notably predicting a leverage liquidation event on October 10 after constructing a $1.1 billion short position. He previously absorbed a $378 million loss from long exposure in January.
Regarding institutional activity, US spot Ethereum ETF products terminated a four-day positive flow sequence on Thursday, recording $103.5 million in net capital withdrawals.
CryptoQuant analysis reveals Bitcoin-focused funds have accumulated 92,116 BTC since February’s market bottom, whereas Ethereum-focused funds have liquidated 127,000 ETH during the corresponding period.
“Throughout uncertain market conditions, numerous funds demonstrate greater readiness to decrease ETH holdings initially, while preserving or expanding BTC positions as the ‘lower-risk’ cryptocurrency allocation,” CryptoQuant reported.
Strategic Accumulation Persists Despite Distribution Trends
Not every large holder is liquidating positions. A wallet with apparent ties to Erik Voorhees purchased 2,920 ETH using 6.67 million USDT, paying approximately $2,284 per token, based on Lookonchain data.
This identical wallet had previously amassed 123,184 ETH representing $266 million in value. While no definitive connection between the wallet and Voorhees exists, market observers are monitoring this accumulation behavior attentively.
Cryptocurrency analyst Ted noted on X that ETH’s decline beneath $2,300 has amplified bearish sentiment throughout the market, with deteriorating investor confidence following the negative ETF movements.
Critical Price Levels Under Observation
Examining chart patterns, Ethereum maintains position near its 20-day and 50-day exponential moving averages at approximately $2,307 and $2,265. The 50-day EMA delivered support following a two-session pullback.
Trader Sky published a chart on X illustrating three cup and handle formations developing beneath the $2,389 resistance threshold. The analysis highlighted a potential advance toward $3,000 should ETH successfully breach that zone.
Trader Cantonese Cat shared an alternative chart displaying ETH retesting a descending trendline previously broken above in late April, indicating a possible false breakout before any sustained upward movement.
Primary support levels are positioned at $2,197 and $2,107. Resistance barriers stand at $2,389, followed by $2,746.
ETH has not validated a breakout beyond $2,389 as of Friday’s trading session, with price action continuing below that threshold.
