Ethereum Whales Dump 143K ETH as Price Nears $1,528 Support

Ethereum (ETH) price traded below $1,600 on Thursday, dipping 1% during the early Asian session, as whale-driven sell pressure mounted and on-chain metrics signaled a retest of critical support levels.

Ali Martinez from IntoTheBlock reported that Ethereum whales offloaded over 143,000 ETH in the past seven days. The selling spree aligns with growing concerns over ETHs value accrual model and its inability to capture fees after the March 2024 Dencun upgrade.

Ethereum whales dumping: 100–1K holders drop fast. Source: Ali Martinez/X

“$1,528.50 is a key support level,” Martinez noted, adding that over 2.61 million addresses had accumulated around 4.82 million ETH at that price. If broken, the zone could trigger further downside volatility.

Dencun Trade-Off Hits ETHs “Ultrasound” Narrative

Ethereums recent Dencun upgrade accelerated data availability across Layer-2 chains. According to Binance Research, scalability improved by 15.95x. However, the upgrade slashed Layer-1 (L1) fee accrual, weakening ETHs utility as a revenue-generating asset.

Chain Fees. Source: Binance Research

L2s now settle for a fraction of what they previously paid on L1, the report added. As a result, ETHs narrative as “ultrasound money,” based on burned gas fees, has lost ground to faster rivals like Solana and BNB Chain.

Some Ethereum developers proposed increasing blob fees to support L1 earnings. However, Binance analysts warned that Layer-2 networks could migrate to cheaper alternatives like Celestia or EigenLayer if minimum blob costs rise.

“L2s are rational businesses,” the report stated, suggesting a price-sensitive dynamic that could fragment the Ethereum ecosystem further.

ETH Price Approaches Historic Buy Zone as Sentiment Weakens

Market participants are watching closely as ETH approaches its realized price—a level historically associated with macro bottoms. Analyst Abramchart highlighted that each major Ethereum bull cycle started near or below the lower Bollinger Band, which ETH is now approaching.

Ethereum price nears realized band floor again. Source: Abramchart

“If the trend continues downward, it could signal deep-value accumulation,” abramchart noted. However, they cautioned that a clean break below the band could confirm further weakness.

As ETH trades closer to or below this metric, sentiment often turns neutral or bearish—setting the stage for potential recovery or capitulation.

ETH Price Caution Urged Amid “Buy the Dip” Fatigue

Short-term traders remain on edge. IncomeSharks, a well-followed X account, shared personal losses from mistimed entries.

“A good example why taking profits is important,” they wrote. “Buying every dip doesnt always work.”

Source: IncomeSharks/X

The comment reflects broader market fatigue after multiple failed bounces, as ETH bulls struggle to maintain momentum. Volume has dried up on most exchanges, and speculative buying has cooled.

That said, historical data favors patient accumulation during these drawdowns—provided prices hold near key zones like $1,528. Any breach below could alter the trend structure entirely.

ETH Holds Line, But Eyes on May Upgrade

Ethereum still outpaces competitors in network security, maintaining over 1 million validators—far ahead of Celestia (100) and EigenDA (170). But the debate around value accrual remains unresolved.

Cost paid to L1/Data posted. Source: Binance Research

Binance Research flagged “based rollups” as a possible solution. Taiko, one such rollup, contributed more L1 fees to Ethereum than the top three L2s combined over the past year. Yet, upcoming upgrades—Pectra and Fusaka—do not prioritize this model, which may delay resolution.