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Ethereum Faces a Crucial Price Test as Whales Shake Up Market Sentiment

Ethereum Faces a Crucial Price Test as Whales Shake Up Market Sentiment

CryptonewslandCryptonewsland2025/10/14 06:42
By:by Patrick Kariuki
  • ETH nears key $4,280 resistance as whales trigger heightened market tension.
  • Exchange reserves fall, showing continued accumulation despite heavy whale selling.
  • Positive funding rates reflect optimism, but short pressure could spark rapid liquidations.

Ethereum’s ETH , the second-largest crypto asset, teeters at a critical junction. As prices touch the $4,280 resistance level, emotions are heightened across the crypto space. It’s not just a number as that position is where sentiment, leverage, and liquidity collide. Whales are lurking, traders are shifting, and the next couple of sessions will likely dictate if Ethereum breaks higher or withdraws sharply.

looks like $ETH final boss is tough

Look at that , its really struggling to hold above $4,000

if breaks below , next retest will be at $3850 pic.twitter.com/2wooX73oWH

— Shreekumar (@0xsk777) October 10, 2025

Whales Stir Market Tension

Ethereum’s short-term outlook has turned unpredictable as whale activity intensifies. A well-known Bitcoin veteran recently opened a $329 million short position against Ethereum on HyperLiquid . The move, backed by 12x leverage, revealed strong bearish conviction near key resistance levels. Adding more weight to the tension, another whale transferred 14,275 ETH—worth over $62 million—to Binance.

That transaction followed an earlier profit spree of more than $156 million, according to Lookonchain data. Traders read this as a signal that major holders might expect a pause or correction ahead. Such moves have rattled retail investors, hinting that heavy selling could drag prices lower if ETH fails to maintain strength above $4,200. Still, the story doesn’t end there. Despite the heavy deposits, exchange reserves have dropped by 2.26%, leaving around $69.63 billion in total holdings.

When exchange reserves decline, fewer tokens remain available for quick selling. Historically, this pattern often marks bullish setups as reduced supply creates scarcity. Many traders see this as a healthy sign of long-term confidence despite short-term whale activity . However, if major holders keep liquidating positions, this fragile balance may break.

Funding Rates Signal Confidence Amid Uncertainty

Ethereum’s derivatives market paints a different picture. The OI-Weighted Funding Rate stands at 0.0062%, signaling optimism among leveraged traders. A positive funding rate means traders are paying to hold long positions, expecting higher prices ahead. This optimism directly contrasts with the whales’ cautious tone. Yet, such confidence can act as a stabilizer during volatile periods.

When funding is positive, it has a tendency to smooth out steep drops and keep the sentiment positive. But there can be danger lurking underneath. If the pressure from whale-driven shorts ramps up, those long positions could promptly round up to nothing. Liquidations would magnify volatility in price and transfer pain into panic in little more than an hour.

Ethereum’s fate now rests on the $4,280 level – the line of savoir and doubt. A successful break could spawn the next wave of buying, resulting in ETH advancing higher than recent all-time highs. On the other hand, a failed break may result in another round of profit taking, pushing prices down toward support at $4,000.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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