Whale Activity Drives Volatility in Ethereum Market

Ethereum's recent rally is viewed as fragile, with analysts cautioning that leveraged trading rather than organic demand has fueled the price surge, increasing the risk of sharp declines—such as those following the U.S. airstrike on Iran. In response to the dip, newly created whale wallets withdrew over 50,000 ETH (about $113 million) from Binance, and another whale accumulated 32,356 ETH ($72.45 million), signaling potential strategic accumulation. Despite this bullish activity, on-chain data revealed a notable deposit of 20,461 ETH ($45.67 million) to Binance, which could indicate increased selling pressure and short-term volatility. Options market data shows traders actively hedging against further downside, and ETH trading volumes have spiked amid these large whale movements. Market sentiment remains highly reactive to both accumulation and sell-offs from major holders. Analysts highlight that reclaiming the $2,350 resistance level is crucial for recovery, while failure to do so could see ETH retest support near $1,870.