Ethereum whales throw away millions as their networks get weaker – are massive price crashes coming?

• Ethereum is facing a decline in whale sales and stable supply.
• Several technical indicators suggest bearish pressure, with analysts identifying $1,546 as the main level of support.
• Ethereum’s prices are probably inflated, and some believe it can only be maintained if its value is used for stable assets and real-world assets.

Ethereum (ETH) is under considerable pressure following the latest bullish whale activity that escalated its sales in the market. LookonChain’s recent wallet data reveals that the newly formed wallet recently withdraws 3,000 ETH worth $492 million from Kraken, borrowing 3 million USDC to transfer it to Kraken, and depositing it into Aave and combined protocols to use it to fund more ETH purchases.

Similarly, today Galaxy Digital, another popular Crypto investment company led by Michael Novogratz, moved 12,500 ETH to Binance for $20,361,725. Within these three days, Galaxy has moved more than 25,000 ETH, or more than $40 million in ETH.

Other whale transactions include a deposit of 8,922 ETH, worth approximately $1482 million from Kraken, and a sale of 8,001 ETH, at $13.06 million per $1632 ETH.

At this writing moment, Ethereum was around $1,634.54, a 1.62% drop in the last 24 hours. Overall sentiment towards the market appears to be more cautious, with ETH down almost 50% compared to last year’s same time period.

A decline in network metrics raises investors’ concerns

Apart from price, the basic aspects of Ethereum show signs of weakness in its network. Last week, Stablecoin supply fell to $6.45 billion with Ethereum and rose to $2.727 billion with Tron, with USDT and USDC revenue volumes of $1.52 billion.

Additionally, Ethereum’s TVL for distributed finance fell to $46.5 billion from $66.5 billion in early 2025. This means that user engagement and overall capital invested in the network are steadily down.

Technical indicators reinforce bearish feelings. On the daily chart, the relative strength index is 41.71, indicating the possibility of moderate downward or lateral movement. Also, the MACD is -114.1, which shows a bearish trend, but the signal line is -123.6.

Source: Trading View

Famous on-chain analyst Ari Martinez points out $1,546 as a key level of support. Over 820,000 ETH have been purchased at this price level. That means the Bulls should be well followed to see the bounce.

Analysts discuss Ethereum’s long-term value proposition

Ethereum’s value proposition is also questionable. Garrison Yang, co-founder of Web3 Development Studio Mirai Labs, believes Ethereum is overrated. He argues that Ethereum Layer-1 revenue is declining despite Layer-2 primitives such as Base and Kinkai relying on the Ethereum network.

Base reported revenue of $82.7 million last year, while paying $5 million to Ethereum’s Layer-1. In comparison, Arbitrum previously generated $95 million in revenue from $152 million before Dencun’s upgrade, significantly reducing Layer-1 rent collection.

However, Yang is more careful about the performance of Ethereum’s Excherium’s Exchange-Traded products (ETFs) compared to Bitcoin’s ETFs. According to him, the adoption of real-world assets (RWAS) in the Ethereum chain will define its future significance.