Ethereum Volatility Rises with Whale Deposits and Macro Pressure Mounting

Whale deposit of 38,132 ETH worth $61.3M sparks fears of a sell-off as traders brace for volatility near key resistance levels.

ETH faces short-term downside risks amid macroeconomic stress and rising exchange supply suggesting potential profit-taking.

Despite near-term uncertainty, Ethereum mirrors 2020’s breakout cycle with rising momentum and intact long-term bullish structure.

Symbolic Capital Partners triggered market speculation after Lookonchain reported their deposit of 38,132 ETH—worth $61.3 million—into exchanges within eight hours. Such a massive transfer typically signals an impending sell-off, heightening market tension. ETH’s supply on exchanges grew as a result of this action, which frequently precedes price declines. Short-term volatility and a cautious shift in sentiment are what traders are anticipating.

Potential Sell-Off Amid Broader Market Weakness

Besides the ETH transfer, broader macroeconomic signals add pressure. The S&P 500 dropped 10% in just two days, prompting speculation about a Federal Reserve pivot. If equities continue falling, traders expect the Fed to respond with an emergency meeting. Historically, such interventions include rate cuts and quantitative easing—both bullish for crypto assets like ETH.

However, in the immediate term, the Ethereum market faces downside risk. Alva App suggests that large exchange deposits hint at profit-taking or capitulation. Hence, investors may adopt a defensive stance. Moreover, short-term holders could trigger cascading sell-offs if the price breaks below key support zones.

ETH Mirrors Past Cycles Amid Rising Momentum

While short-term volatility is unknown, the long-term structure of Ethereum is strongly bullish in the opinion of analyst Ted. The trend today is similar to previous breakout stages, particularly the lead-up to the 2021 rally. ETH between 2018 and 2020 moved through an accumulation stage before breaking above the $1,400 resistance. This was the beginning of a parabolic rise to $4,800.

Source: Ted

Following that high, ETH aggressively corrected but respected support levels. The same pattern unfolded from mid-2022 until 2023. Price consolidated from $1,800 to $2,200 while putting in higher lows. In late 2023, Ethereum briefly fell below support but instantly bounced back. This wick pattern looked similar to previous breakout setups.

Currently, the barrier level of $3,600 is being approached by ETH. Volume is continuously increasing, and the trendline is still in place. This is similar to the pattern seen in 2020–2021, when momentum steadily increased prior to a significant breakout

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