ETH Price Decline Sparks Panic but Crypto Whales Won’t Sell – Here’s Why

Ethereum, the second-largest cryptocurrency by market cap, has taken a hit, dropping 36% over the past seven weeks. This steep decline has left many investors worried, with fewer ETH holders now in profit. As retail traders rush to sell, Ethereum is struggling to keep up with other major cryptocurrencies, raising concerns about its ability to bounce back.

Despite the downturn, a major shift is happening behind the scenes. A historic movement of Ethereum off exchanges suggests that smart money may be preparing for the next big move.

Let’s dive in.

Record Exchange Outflows – What Does This Mean?

Despite the decline, Ethereum just saw a major event that could shape its price in 2025. Between February 8 and 9, about 224,410 ETH were withdrawn from exchanges—the largest single-day outflow in nearly two years, according to Santiment. This shift suggests that investors are growing more confident in Ethereum’s long-term value.

When large amounts of crypto leave exchanges, it’s often a bullish sign. Investors move their holdings to personal wallets when they plan to keep them long-term, reducing the amount available for trading. This helps ease selling pressure and can support price increases. Following this outflow, ETH – then priced at $2,850 – rose 3.5% to reach $2,950 within 24 hours.

Ethereum’s Network Activity Picks Up

Ethereum’s trading volume surged, with Binance alone processing 1.2 million ETH, while total trading across all platforms hit $3.4 billion. This shift also aligned with a similar trend in Bitcoin, where 10,000 BTC were withdrawn from exchanges, showing that investors are opting to hold rather than sell.

Investor confidence is also visible in Ethereum’s network activity. The number of active Ethereum addresses jumped 8% to 500,000, signaling more engagement. While Ethereum faced selling pressure due to Donald Trump’s tariff plans and global scrutiny of ETH staking models, the market sees these issues as temporary, with long-term potential still intact.

What the Technicals Show Us

From a technical perspective, Ethereum’s price action looks promising. The Relative Strength Index (RSI) sits at 65, indicating solid momentum without being overbought. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, hinting at further gains.

Meanwhile, trading volumes increased by over 8%, and Bollinger Bands signaled higher volatility, with ETH testing the upper band.

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Is a Rebound Coming?

Adding to the positive outlook, crypto analyst Ali Martinez pointed out that Ethereum’s TD Sequential indicator has flashed a buy signal on both weekly and daily charts, hinting at a potential price rally.

While Ethereum’s recent drop has raised concerns, rising investor confidence, growing network activity, and strong technical signals suggest the cryptocurrency could be preparing for a rebound.

Ethereum may have stumbled, but the signs are pointing to a comeback that could catch many off guard.

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