-
Whales withdraw millions of dollars from top crypto exchanges, accumulating ETH.
-
Ethereum is still in a downward trend, consolidating itself between key support levels.
-
The next upgrade is expected correct inflationary side effects.
Ethereum is quietly making its way back to crypto whales despite a bearish price trend and a shaky outlook for the market.
Analysts are asking: What do they know that the rest of us don’t?
Lookonchain, a provider of on-chain data, highlighted several large ETH withdrawals. A Metalpha-linked address moved almost 29,000 ETH (approx. Binance has received $48.7M since April 1. Since mid-February, Gate.io has seen over 46,500 ETH leave via one wallet, while another wallet withdrew more than 10,000 ETH from Bybit.
Related: 4 Bullish Reasons Why The Crypto Market Could Flip Soon
Why are whales buying ETH now?
Pectra, an upcoming network upgrade scheduled to be released by May 2025, is one likely reason. According to Ethereum researcher Justin Drake Pectra will increase the network’s efficiency and boost Ethereum’s burn rate.
Increased burn rate could revive ETH’s deflationary narrative historically linked to price increases. Pectra could counteract economic shifts caused by the Deneb upgrade (Dencun), which boosted ETH production while lowering gas prices.
A glut of coins and insufficient usage caused the price to drop. Pectra could counteract this by increasing demand while reducing supply, a classic setup to create a rally.
Ethereum Price Analysis
Ethereum’s price is still in a downward trend that started in December. Price movements have largely followed corrective patterns. Both recent rallies and pulledbacks have been arranged in three-wave structures. This usually indicates a lack of a clear trend direction.
Ethereum is currently trading in a range between the $1.580 support and $1.687 resistance levels.
RelatedGarlinghouse Shoots down 2025 IPO Rumors, Analysts Still Bullish On XRP
A break above $1618 could be a sign that a bottom has formed and a new rally is about to begin. If this happens, the next target could be around $1925. The market is uncertain until then and there is no clear indication that a trend change has begun.
