A flood of sell orders hit Ethereum after a major whale transferred 5,000 ETH—worth about $12 million—to Binance, triggering alarm among analysts who view it as a possible capitulation signal. Blockchain tracker Lookonchain shared the on-chain data on X, noting this whale’s sudden transfer that coincided with a sharp dip in ETH’s price earlier in the day. Such large, abrupt wallet movements often precede heavy sell-offs. ETH source: lookonchain ETH Whale Movement Sparks Concerns The key transaction unfolded shortly before ETH price dropped to as low as $2,240, per CoinGecko data. The seller reportedly retains around $12 million in ETH at press time. While whale offloading is not uncommon, timing and scale often make them noteworthy. According to CoinGlass data, the sell-off catalyzed around $300 million in liquidations across Ethereum derivatives in the past 24 hours. That surge aligns with an 8% fall in ETH’s price this week, marking it among the worst performers by market capitalization. Crypto markets absorbed $712 million in liquidations during the same period. During the rug pull, Bitcoin dominance rose sharply. As Ethereum sold off, BTC held steady, underscoring its status as a relative safe haven amid market distress. ETH/BTC ratio remains above 0.017, but the shift highlights capital rotation toward Bitcoin. This bearish whale action comes alongside record highs in Ethereum derivatives. Glassnode reports ETH futures open interest now tops $20 billion, marking an all-time high leveraged by traders using stablecoin-based contracts. Analysts note that such leverage increases vulnerability—sharp price moves can trigger cascading liquidations. Crypto trader “Credible Crypto” flagged $2,240 as a critical support level; breaking below could prompt a slide toward $2,000–2,100. Ethereum’s next support lies near the low-$2,200s range. A bounce may require robust uptake in spot ETF inflows or institutional accumulation, neither of which has outweighed this wave of liquidations yet. It’s not the first time whale behavior has triggered concern. Lookonchain identified on X a 48,825 ETH purchase (~$127 million), suggesting a contrast between profit-taking and accumulation points in time. The latest transfer, however, aligns more with panic-driven selling. Source: X On-chain sadness and fear may be setting in. But several established whales continue building positions—as many analysts suggested accumulation during pullbacks reflects longer-term confidence. Still, this 5,000 ETH transfer and active liquidations emphasize how leverage can amplify a sell move. What This Means for Traders With futures leverage at record highs and whales fleeing, ETH faces short-term downside risk. But whales also load up during price dips—creating volatility both ways. Traders need to monitor exchange inflows and outflows, futures liquidations, and BTC ratio for clues.