Ethereum Whales Signal Potential Price Pressure Amid Mixed Market Signals

Recent data highlights a surge in large Ethereum transactions and whale activity, suggesting potential price pressure ahead. While retail engagement remains robust, significant sell-side moves by Ethereum Foundation-linked wallets and bearish whale positions raise concerns. This summary delves into the key developments and their implications for ETH’s market trajectory.

Ethereum Whales Signal Potential Price Pressure

Large ETH transactions have surged over 185%, while whale shorts indicate potential price pressure ahead. Despite this, retail engagement and wallet activity remain strong, hinting at underlying network resilience. An Ethereum Foundation-linked wallet deposited 1,000 ETH worth $1.58 million to Kraken, raising sell-side concerns. Additionally, another whale sold 2,056 ETH and opened a 10x short on Hyperliquid, suggesting bearish intent from large players. These actions raise questions about whether whales are preparing for a deeper correction, despite retail activity remaining strong.

ZKSync’s Parent Company, Matter Labs, Sued for IP Theft

ZKSync’s developer, Matter Labs, has been dragged to court by Bankex for alleged IP theft. The lawsuit claims that former Bankex employees Alexandr Vlasov and Petr Korolev stole the company’s technology and used it to start Matter Labs, which received over $450 million in venture capital funding. The plaintiffs, Bankex CEO Igor Khmel and the Bankex Foundation, claim that Ethereum co-founder Vitalik Buterin reached out to Bankex in 2017 to build operational software for ’Plasma,’ a technology aimed at making Ethereum more affordable. Matter Labs has not expressed concern about the claims.

Ethereum Approaches Key Accumulation Threshold

Ethereum is steadily moving towards its long-standing accumulation threshold, the MVRV Pricing Band, currently at $1,367. Historically, this level has coincided with major market bottoms, leading to significant price recoveries. Traders are closely monitoring Ethereum’s approach to this key zone, anticipating a potential bullish reversal. Additionally, whale outflows and falling exchange reserves suggest quiet accumulation amidst investor losses, adding pressure for a breakout. The broader price structure remains within a descending parallel channel, stretching back to late 2024.

Ethereum Rallies 10% as CME Short Positions Decline

Ethereum (ETH) has seen a significant rally, gaining 10% on Tuesday amidst a decline in CME short positions. The ETH CME basis has dropped from 20% in November 2024 to around 5% in April 2025. This drop follows arbitrageurs covering short positions by selling their ETH ETF holdings after Trump’s tariffs sparked a crypto market plunge. The decline in CME short positions has been steady since Trump’s tariffs were implemented, dropping below $500 million across all trader categories for the first time in 2025. Meanwhile, ETH could face a bearish test after moving above the $1,688 resistance. The general crypto market, including Bitcoin (BTC), also rallied alongside Ethereum.

Ethereum Holds Above $1,500 Mark – Potential Recovery Rally?

Ethereum is currently trading above the $1,500 mark after weeks of high volatility. Analysts are closely monitoring ETH for a breakout above nearby resistance, which could signal the start of a recovery rally. However, some market watchers believe Ethereum may still dip further before a true reversal begins. On-chain data from Glassnode shows the next major support around $1,367, historically a level that has offered strong long-term returns but also coincided with peak market fear.

Ethereum Witnesses Sharp Spike in Adoption Rate Despite Price Volatility

Ethereum’s price has been volatile and has shown bearish trends in recent months. However, despite the prolonged price weakness, the network has seen a significant increase in activity. A recent report from IntoTheBlock revealed a sharp uptick in Ethereum’s new user adoption rate, which ROSE to 40% last week. This surge in adoption indicates a resurgence in participant growth and broader market realignment, showcasing Ethereum’s resilience and potential despite the current price fluctuations.