Ethereum (ETH) Price is Steady: Crash Ahead?

Recently, a huge Ethereum holder, known as a "whale," transferred 3,510 ETH to the Kraken exchange. This has caught the attention of many traders and investors, raising concerns that the whale might be preparing to sell a large amount of Ethereum. If that happens, it could lead to a drop in Ethereum’s price, making people wonder if a bigger market decline is on the horizon. In this Ethereum Price Prediction article, we’ll explore what this transfer could mean for Ethereum’s future.

How has the Ethereum Price Moved recently?

The current price of Ethereum is $2,650.79, with a 24-hour trading volume of $83.74 billion and a market capitalization of $319 billion, giving it a market dominance of 14.30%. Over the past 24 hours, the price of ETH has risen by 2.85%.

Ethereum hit its all-time high of $4,867.17 on November 10, 2021, and its all-time low of $0.420897 was recorded on October 21, 2015. Since reaching its peak, the lowest price Ethereum has seen was $897.01 (cycle low), while the highest price since then was $4,094.18 (cycle high). Currently, market sentiment around Ethereum remains neutral, as indicated by a Fear & Greed Index score of 50 (Neutral).

Ethereum has a circulating supply of 120.34 million ETH, with an annual supply inflation rate of 0.09%, meaning that 113,736 new ETH were minted in the past year.

Whale’s Big Ethereum Transfer Sparks Price Crash Fears

An early Ethereum ICO participant, who accumulated 150,000 ETH (now valued at $389.7 million), has recently moved 3,510 ETH (around $9.12 million) to the Kraken exchange after being inactive for over two years. 

When large Ethereum holders, especially long-dormant ones, transfer ETH to exchanges, it can create short-term market pressure. If multiple whales start selling off their ETH, it could drive the price down against both the US dollar and Bitcoin.

Bearish sentiment is also growing due to the underperformance of Ethereum exchange-traded funds (ETFs) in the US. Since their launch in July 2024, these ETFs have seen outflows totaling $607.60 million, with Grayscale's investment vehicle being a major contributor to the withdrawals.

Will Ethereum Price Crash?

The recent activity of a dormant Ethereum whale transferring a significant amount of ETH to Kraken has raised concerns about a potential price crash. Historically, large transfers from whales to exchanges have often preceded sell-offs, which could increase selling pressure and lead to short-term price declines. Combined with the underperformance of Ethereum ETFs, this sentiment could further tilt the market toward bearish expectations.

However, Ethereum's broader market performance over the past year provides some stability against an immediate crash. The price has surged by 65% in the last 12 months, outpacing 51% of the top 100 crypto assets. 

It has also shown resilience with 15 green days in the last 30 days, indicating some level of investor confidence and strong buying interest during favorable periods. Ethereum's high liquidity, supported by its large market cap and low yearly inflation rate of 0.09%, also suggests that the asset has a cushion against extreme volatility. 

Although ETH is currently trading below the 200-day simple moving average and has been outperformed by Bitcoin, these indicators don't necessarily signal an imminent crash but rather point to market consolidation.

Predictively, while there may be some short-term downward pressure due to whale activity and ETF underperformance, the strong fundamentals—such as high liquidity and solid yearly performance—suggest that Ethereum is more likely to experience temporary fluctuations rather than a significant price crash. 

 Traders should watch closely for any further large-scale sell-offs from whales, which could intensify bearish momentum. Still, the overall outlook remains cautiously neutral, with Ethereum poised to recover or stabilize if broader market conditions improve.