Ethereum dropped to $2,635 after a broad crypto sell-off pushed a whale to exit $111.89 million worth of ETH, triggering over $96 million in long liquidations. The token has since recovered to around $2,692, but traders are now watching the $2.6K-$2.7K zone as the level that decides whether ETH retests $2.8K or slides toward $2.1K.
Whale sells $111 million as liquidations mount
The broader crypto market cap fell 3%, and altcoins took the heaviest hit. Ethereum dropped from $2,788 to a low of $2,635 before recovering slightly to $2,692 at press time.
The decline forced over $96 million worth of long positions to liquidate, with total liquidations reaching $114 million. As a result, investors, including whales, hurriedly closed positions in a wave of liquidation, which intensified the downside pressure.
One OTC whale sold 42,005 ETH worth $111.89 million and now holds 9,996 ETH worth $26.8 million. This whale had been accumulating and chasing the recent rally, so the exit after only a few days suggests fear over the trend's sustainability.
Whale behavior splits between buyers and sellers
The exiting whale was not isolated. Broader whale activity seems to have flipped toward distribution, even as some whales keep accumulating. The number of accumulating whales rose to 211 this week, while selling whales climbed to 219, suggesting key players are not yet fully convinced of the trend.
Exchange activity echoes that split. Ethereum's exchange netflow had stayed negative for five consecutive days but turned positive at press time, rising to 10.6k ETH — a sign that sellers are moving supply back onto exchanges.
Key levels traders are watching
ETH is now consolidating after its rejection near $2.8K, trading around $2.64K inside the $2.6K-$2.7K resistance zone. A sustained daily close above that zone would leave the $3K region as the next resistance, while continued rejection could send ETH toward the $2.4K-$2.5K support area.
A deeper correction could push ETH down to the $2.1K support region, where the 100-day and 200-day moving averages are closing in to form a potential bullish crossover. On the 4-hour chart, RSI has dropped below the 50 level, reflecting weaker short-term momentum rather than a confirmed reversal.
Exchange supply keeps shrinking despite the pullback
Even with the rejection, Ethereum's exchange supply ratio has fallen from roughly 0.18 in early 2025 to about 0.123 currently, meaning less ETH sits readily available for sale on exchanges. That contraction alone does not guarantee higher prices, but it narrows the pool of supply sellers can tap if demand returns.
From here, Ethereum's next move depends on whether accumulating whales outweigh the distributors. A decisive close above $2.7K would open the door back toward $3K.
Sources: AMBCrypto, CryptoPotato
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