- Ethereum whales are taking profits as exchange reserves hit record lows, hinting at a supply crunch that could lift prices further.
- Falling ETH supply on exchanges shows strong holder confidence but also sets the stage for sharper price swings in the short term.
- Analysts see ETH breaking $5K after a possible dip to $3.6K–$4.2K, making patience and smart entries key for better returns.
The Ethereum market is heating up as high-value traders and shrinking exchange reserves create mounting tension for investors.
Recently, blockchain tracker Lookonchain revealed that wallet “0x17E0,” believed to be linked to hackers, sold 4,958 ETH worth $22.13 million at $4,463 during a brief market dip.
This sale locked in a profit of $9.75 million. The same wallet had previously miscalculated trades, selling large holdings at $1,932 before buying back at higher prices.
Exchange Reserves Plunge as Prices Climb
Besides individual whale moves, on-chain data shows a deeper market shift. Analyst Mister Crypto noted Ethereum is being withdrawn from exchanges at record pace. Moreover, the supply of ETH on exchanges has steadily fallen since mid-2023, accelerating into mid-2025.
Source: Mister Crypto
Because of this, there are fewer coins available for trading, causing what many refer to as a “supply crunch.” This pattern frequently shows that holders are putting ETH in cold storage, indicating a greater belief in the long-term growth of the price.
However, because even brief spikes in buying or selling can cause price movements, such scarcity also raises volatility. This backdrop of reducing supply has already helped Ethereum’s price soar above $4,600. With the most recent surge, ETH is now less than 20% below its peak.
Analysts Warn of Pullback Before New Highs
The trader Michaël van de Poppe advised prudence despite optimistic fundamentals. He maintained that chasing at present highs carries greater risk and that the best time to buy ETH has passed.
Source: Michael Van de Poppe
His chart analysis indicates that the first high-probability buying zone is located between $4,100 and $4,200. Additionally, if broader market stress materializes, a deeper retreat might push ETH to the $3,600–$3,900 level.
Van de Poppe also emphasized long-term upside potential, predicting that if the market stabilizes, future targets will surpass $5,000. Therefore, investors may be positioned for the next leg higher with disciplined entries at crucial levels.
