Ethereum (ETH) experienced a sharp decline on Friday, briefly falling below the critical $2,500 level amid growing fears of large-scale institutional sell-offs. The volatility came as global macro pressures intensified and on-chain data signaled heavy exchange inflows, adding to speculation of whale-driven distribution.
ETH Plunges on High-Volume Sell-Off, Then Recovers
According to CoinDesk Research, ETH dropped from $2,551.09 to $2,499.09, a 1.95% intraday range, before recovering slightly to trade near $2,506. The most dramatic move occurred within a two-minute window between 01:53 and 01:54, when Ethereum plummeted from $2,521.35 to $2,499.09 on more than 48,000 ETH in combined volume.
This sharp downside reversal broke through the $2,515–$2,520 support zone, triggering renewed bearish sentiment and sparking fears that large holders—potentially institutional “whales”—were offloading positions.
Whale Activity Raises Market Concerns
Further fueling concerns, on-chain analytics revealed that over 385,000 ETH was transferred to centralized exchanges, primarily Binance. Such inflows often precede sell-offs, suggesting whales may be trimming their holdings amid rising geopolitical tensions and risk-off flows.
These developments come amid broader market unease, with U.S. tariff threats and global trade headwinds putting downward pressure on both traditional and crypto markets.
Key Support at $2,500 Holds—For Now
Despite the volatility, ETH has since stabilized around $2,504–$2,508, a zone traders are now watching as interim support. The $2,500 level is widely regarded as a key psychological and technical threshold, and its defense may determine Ethereum’s near-term trend.
Technical indicators show that ETH was forming an ascending channel pattern before breaking down in the final hour of trading. While the rebound above $2,500 is encouraging, volume patterns still suggest potential distribution, and the momentum remains fragile.
Outlook: Buyers Must Hold the Line
Whether Ethereum can maintain its footing above $2,500 will likely depend on short-term sentiment and the actions of major holders.
With macroeconomic pressures mounting and market participants closely watching exchange flows, the next few trading sessions could prove critical in determining whether ETH will resume its uptrend—or test deeper support levels below $2,500.