Ethereum Whales Dump $2.7 Billion, Is This the Final Hurdle Before a Bottom Breakout?

▲ Ethereum (ETH)

Ethereum (ETH) whales recently shocked the market by dumping holdings worth $2.7 billion, but paradoxically, on-chain indicators are signaling that the final bottom of the მიმდინარე bear market may be forming.

According to cryptocurrency-focused media outlet BeInCrypto on February 21 (local time), while the moves of major investors in the Ethereum market have recently diverged, aggressive selling by whales has been detected. Data analysis from blockchain analytics firm Santiment shows that addresses holding between 100,000 ETH and 1 million ETH sold approximately 1.43 million ETH over the past two weeks, amounting to roughly $2.7 billion at current prices.

Such whale selling pressure is interpreted not as a typical panic-driven sell-off but rather as a final capitulation event that often appears toward the end of a bearish cycle. Historically, large-scale exits by major holders have tended to occur near market bottoms and have often preceded trend reversals once selling pressure was fully exhausted. As whale distribution nears completion, the market is likely to enter a phase of gradual stabilization.

The on-chain metric Net Unrealized Profit/Loss (NUPL) also suggests that Ethereum is currently in a capitulation zone. This indicates that average investors are experiencing substantial unrealized losses, and in previous cycles, meaningful price rebounds followed after similar readings appeared. The longer the market remains in the capitulation zone, the more speculative selling tends to be cleared out, strengthening the conviction of remaining holders.

Data from the Pi Cycle Top indicator, a technical analysis tool, further supports the possibility that Ethereum is forming a bottom. A severe divergence between short-term and long-term moving averages has historically been a common pattern observed near cycle lows. Although it is difficult to predict the exact timing of a rebound, this structural setup suggests that Ethereum is preparing for stabilization rather than an extended decline.

Currently, despite whale selling pressure, Ethereum is firmly holding the $1,928 support level. If this level breaks, there is a risk of a deeper decline toward $1,820 or $1,750. Conversely, if the support holds, Ethereum may attempt to break above the $2,027 resistance. Market participants are closely watching whether whale selling subsides and whether a decisive breakout above $2,108 can signal a full-fledged trend reversal.

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