- Small whale sell-offs caused short-term ETH volatility, but institutional ETF inflows suggest deeper market strength remains intact.
- Despite ETH dipping below $2,400, technicals show oversold conditions while smart money continues to accumulate through ETFs.
- Retail panic contrasts institutional confidence as ETF inflows surge in May, hinting at a strong medium-term Ethereum rebound.
Ethereum faced renewed selling pressure as small whales exited their positions amid market turbulence. According to Lookonchain, addresses 0x3FF0 sold 3,158 ETH worth $7.51 million at $2,378. Meanwhile, 0xBA04 deposited 2,645 ETH to Bybit, and 0x2da8 sent 1,768 ETH to Binance. These sudden moves sparked short-term volatility, breaking support levels around $2,400.
The situation is still more complicated, though. Alva pointed out that lesser whales and swing traders, not institutions, were responsible for these transactions. Additionally, technical indicators point to ETH being oversold, which might pave the way for relief rebounds. Despite the panicked movements, Ethereum has a high level of liquidity. Therefore, rather than representing consistent outflows, these activities most likely indicate portfolio rotation. Although there are still short-term downward concerns, the medium-term structure seems stable.
Institutions Accumulate Despite Retail Panic
While retail traders are rushing to sell, institutional investors are steadily accumulating ETH via ETF products. Sensei shared recent Ethereum ETF inflow data, revealing a distinct pattern. January saw the largest spot ETF inflows, peaking at over 120,000 ETH on some days. The orange trendline showed price action directly correlated with these surges in demand.
Source: Sensei
February marked a slowdown, with consistent outflows dominating the charts. This shift led to bearish sentiment and falling ETH prices. March followed a similar pattern, highlighted by a major single-day outflow nearing 40,000 ETH. Price movement remained muted throughout, reflecting declining demand.
Renewed Buying Could Drive Price Recovery
April brought mixed sentiment as inflows and outflows alternated frequently. Market stability returned during this choppy phase, creating a range-bound environment. May introduced a turnaround. Net inflows surged, with several days recording over 40,000 ETH in ETF buys. At its peak, institutional buying reached 80,000 ETH in a single day.
Moreover, this cyclical pattern signals that institutional players are not exiting. Instead, they are timing entries for long-term exposure. Hence, ETH’s recent price action reflects market repositioning rather than fundamental weakness. If coordinated whale accumulation follows this correction, Ethereum could bounce strongly. Still, volatility remains high.
