Ethereum – How a ‘deposit’ and $1.6 billion in whale purchases can affect ETH’s price

Whales dive deep—Ethereum sees massive institutional moves that could reshape the entire market landscape.

The Deposit Effect

When major deposits hit the Ethereum network, they don't just sit there—they create ripple effects across liquidity pools and validator queues. These aren't your average crypto transfers; we're talking about movements that make the entire blockchain take notice.

Whale Watching Pays Off

That $1.6 billion purchase spree by major holders signals more than just deep pockets—it reveals institutional confidence levels that would make traditional finance bankers nervous. While Wall Street still debates whether crypto is 'real,' these players are putting real money where their mouths are.

Price Mechanics Unleashed

Supply shocks meet demand surges in what could become Ethereum's perfect storm. The network's economic model responds to these pressures in ways that often defy conventional market logic—because when you're dealing with digital gold, the old rules don't always apply.

Market Impact Assessment

Expect volatility, but the smart money's betting on upward trajectory. These whale movements typically precede major price discoveries—though whether traditional analysts will understand why remains questionable.

Key Takeaways

What did Jeffrey Wilcke do?

Ethereum’s co-founder deposited ETH worth millions into Kraken, fueling speculations of a sell-off. 

Is Ethereum’s price likely to fall further?

It could fall by another 11% if it doesn’t hold on to the $3,900-level. 

Against the backdrop of market uncertainty, ethereum (ETH) might be weakening on the charts after losing its key support. This bearish outlook can be further reinforced by Ethereum co-founder Jeffrey Wilcke, after he appeared to dump ETH worth millions. 

Ethereum whales add billions worth of ETH!

On 25 September, on-chain analytics platform Lookonchain shared a report revealing Wilcke’s $5.99 million ETH dump on Kraken. This transaction was recorded when the altcoin was trading NEAR the $3,950-level.

Worth noting, however, that it is yet to be confirmed if Wilcke has indeed sold his ETH holdings, or if he’s just moving assets from a wallet to an exchange. This is typically a precursor to a potential sell-off.

That’s not all though as at the same time, whales seized the dip by buying heavily. Lookonchain also revealed that 15 wallets purchased 406,117 ETH worth $1.6 billion from Kraken during the market dip. These wallet holders included Galaxy Digital, BitGo, and FalconX.

Hence, the question – Is this an ideal time to buy ETH or will the altcoin’s price continue to fall in the coming days?

Ethereum’s (ETH) price action and technical analysis

Over the last seven days alone, ETH’s value has fallen by over 13%. In the last 24 hours too, it fell by over 2%.  Thanks to these downside moves, ETH was trading near the $3,940-level at press time. However, a hike in investor participation could change the altcoin’s fortunes soon. 

According to AMBCrypto’s technical analysis, ETH is now near a make-or-break point at $3,900 after losing its strong support at $4,050 on Thursday. Following this breakdown, sentiment has shifted to the negative side.

Source: ETH/USD, TradingView

Based on its press time price action, if the downside momentum continues and ETH’s daily chart closes below the $3,900-level, there is a strong possibility it could dip by 11.50% and reach the next support at $3,400.

Here, it’s also worth pointing out that the Bollinger Bands indicator had broadened notably, with the price at the lower boundary of the bands. This suggested that the asset might be in oversold territory, with a price reversal likely possible.

On the contrary, the Average Directional Index’s (ADX) value climbed to 20, below the key threshold of 25 – A sign of weak momentum.