Ethereum Price at $1.5k as Whale Activity Shifts Market Momentum

Ethereum (ETH) saw a sharp rally on Wednesday, jumping over 11%, but it didn’t last long; today, the whale activity took a turn. The upward movement came after Trump announced tariffs however, the downturn began due to a pause on some tariffs. These sudden fluctuations are due to geopolitics, which raise concerns over Ethereum price growth. Market observers have speculated that the recent price action could be nothing more than a bull trap.

Short-Term Gains, Long-Term Uncertainty

Many market analysts had already predicted that the risk-off sentiment was still strong among investors. This cautious mood grew even more after the Trump administration clarified that a 10% tariff still applies to all imports. While the Ethereum price did spike for a brief moment, the broader macro environment hasn’t changed enough to support a lasting rally.

So, while the crypto market loves good news, it’s clear that this rally didn’t have strong enough legs to keep climbing, especially with ongoing economic uncertainty in the background.

Whales Take Advantage of the Rally

On-chain data shows that some big Ethereum holders, commonly called whales, used this short-term bounce as an opportunity to cash out. One major Ethereum whale who had been inactive for two years sold over 10,700 ETH at $1,576. Interestingly, this same whale had originally bought ETH at just $8.

Another long-time ETH holder sold nearly 8,000 ETH after three years of dormancy. In addition, a DeFi user unloaded almost 29,000 ETH to repay a debt. These sales suggest that whales are not confident the Ethereum price can keep rising under the current conditions.

Whale Holdings Hit Five-Month Low

The result of all this whale selling? A significant drop in the total ETH held by major addresses. The balance of wallets holding between 10,000 and 100,000 ETH has now hit a five-month low, totaling just 24.66 million ETH. That’s a 1.18 million ETH drop over the past six weeks.

During times when investors become risk-averse, whale movements tend to drive the market. This recent wave of sell-offs is a clear sign that even the biggest players are playing it safe, and that usually puts downward pressure on Ethereum.

Key Support Level in Danger

The price is now testing key support around the $1,500 level. After reaching a mid-week high of $1,682, ETH has dropped roughly 4%, sitting at $1,550 at the time of writing. If buyers can’t hold the line at $1.5k, there’s a risk of a deeper fall.

The coin has been moving within a descending channel since December. If it breaks below this channel, the Ethereum price could fall to the $1,000-$1,100 range, a critical support zone during major events like the UST/LUNA collapse and the FTX crash in 2022.

Ethereum Future

While short-term sentiment may swing with headlines, the Ethereum price is still under pressure from broader macro factors. Whales have shown their cards by selling during the rally, and until we see a shift in market sentiment, caution remains the theme. For now, all eyes are on the $1,500 support zone and whether it can hold.