Big whales escape! The secret behind Ethereum's continued strength.

Ethereum has recently entered a consolidation period. After losing the $4,500 mark, the price has been fluctuating narrowly above $4,250. This pullback has indeed raised many concerns in the market, with investors speculating whether ETH will continue to decline or gather strength for another surge. However, amidst this fluctuation, Ethereum's fundamentals remain strong, with Large Investors and institutions continuously accumulating positions.

According to analyst Darkfost, the activity of Large Investors in Ethereum remains active, with a considerable amount of funds flowing out of mainstream exchanges in recent days. These withdrawals reveal an important trend: the large whales are not selling, but rather transferring ETH into the decentralized finance ecosystem. This morning, several notable transactions were detected, where Large Investors transferred ETH from exchanges to platforms like Aave, seeking higher yield opportunities.

This continuous accumulation and redeployment of funds reflects the strong belief of Large Investors in Ethereum as one of the most attractive assets in the market. By utilizing ETH in DeFi rather than selling it off, these large players are demonstrating their confidence in Ethereum's long-term value. While the market may appear to be in a consolidation phase on the surface, an undercurrent of a bull market may be laying the groundwork for Ethereum's next major breakthrough.

Large-scale capital outflow demonstrates Ethereum's strength

Large Investors in Ethereum have once again demonstrated their firm belief, with a series of large sums flowing out of exchanges. In just a few minutes, three massive transactions were recorded: the first was approximately 23,000 ETH, the second was even larger at 64,000 ETH, and the last was an astonishing 83,000 ETH. In total, these movements represent about $750 million in Ether withdrawn from exchanges.

These capital outflows have had a significant impact on exchange reserves. With this wave of withdrawals, the amount of ETH held by exchanges has dropped to 4.2 million, highlighting the ongoing trend of decreasing balances at centralized exchanges. Historically, a reduction in reserves is often seen as a signal of strong demand, as coins are transferred out of exchanges and into long-term storage or deployed to decentralized finance platforms like Aave for yield.

Large Investors are showing determination at this time, sending a strong signal to the market. They have not reacted to short-term fluctuations but are focused on the long term, highlighting the resilience of Ethereum even during the consolidation phase. This activity also explains why ETH has recently outperformed Bitcoin—Large Investors' demand continues to flow into Ethereum, while Bitcoin faces a more subdued accumulation trend.

The intensity of this capital outflow reflects the increasing appetite of institutions and Large Investors for Ethereum. As reserves shrink and demand remains steady, the market may be paving the way for the next breakout of Ethereum once the broader environment aligns.

Testing Key Support Levels in a Volatile Market

Ethereum is currently trading at around $4,381, entering a consolidation phase after experiencing a period of fluctuation, with the price capped below the $4,500 resistance zone. The chart shows that ETH is supported in the $4,300 area, with the 200-period moving average ( red line ) acting as a key structural support. As long as this level holds, Ethereum can avoid a deeper pullback.

Short-term moving averages provide insights into momentum. The 50-day moving average ( blue line ) and the 100-day moving average ( green line ) are converging, reflecting a sideways market condition with unclear direction. ETH has tested the resistance zone of $4,450-$4,500 multiple times in the past two weeks but has failed to decisively break through, highlighting selling pressure.

For bulls, reclaiming the $4,500 level will be a key step in rebuilding momentum towards $4,700 and $5,000. On the downside, if it loses the $4,300 level, ETH may retest $4,200, and further weakness could pull the price down close to $4,000.

I personally believe that while Ethereum may continue to fluctuate in the short term, the ongoing influx of large capital and off-market accumulation indicate that this pullback is more like a pause in the upward trend rather than a trend reversal. With the continuous expansion of the DeFi ecosystem and Ethereum's solid position in institutional portfolios, maintaining a long-term bullish outlook remains a wise choice.