Ethereum (ETH) Price Prediction: Ethereum Whale Sell-Off Hits $360M as Market Shakeouts Push Price Toward Oversold Rally

The Ethereum price today sits near $2,980—down more than 21% this month—as traders assess whether recent volatility marks the final stage of a broader correction or the precursor to a rebound. Based on chart observations using a four-hour and daily timeframe, short-term RSI readings below 40 and a descending price channel point to oversold conditions. While these factors may support a technical recovery, elevated futures open interest and ongoing liquidations continue to create uncertainty around the ETH price outlook.

Whale Activity Signals Notable Outflows

Ethereum is facing renewed selling pressure as on-chain data highlights a significant reduction in whale-held supply during December. According to blockchain analyst Ali Charts—known for tracking institutional wallet movements using Santiment and Glassnode data—wallets holding more than 100,000 ETH reduced their combined position from 5.73 million ETH in early October to 5.61 million ETH by December 20, 2025. The change represents a net decline of roughly 120,000 ETH—valued near $360 million based on Ethereum price levels at the time.

Between October 9 and December 20, 2025, Ethereum whale holdings fell by 120,000 ETH (~$360M), reflecting potential short-term profit-taking amid ETH’s consolidation near $2,980. Source: Ali Martinez via X

Ali Charts described the sell-off as an important shift in market structure, though he cautioned that the trend did not occur in a single week, as some social posts suggested. The drop unfolded gradually. “It underscores how difficult it is for large holders to offload positions without moving the market,” the analyst noted.

This reduction comes as the current ETH price trades near $2,980, down around 21% over the past month. Based on exchange netflow dashboards reviewed alongside price charts, the ETH market remains under pressure amid reduced spot demand, higher funding rates, and cautious macroeconomic sentiment.

Market Shakeouts Leave Traders Struggling for Direction

Retail traders and long-term holders have also voiced concern over rapid price swings. One trader posting under the handle @manhhuynh2310 said they entered the market near the $4,200 level and have since endured repeated volatility. “I kept thinking there would be just one final shakeout before the market reversed,” the post read, “but it ended up shaking out four times in one month.”

A trader who bought Ethereum at $4,200 noted that instead of a single final shakeout before a market rebound, the price experienced four separate shakeouts within one month. Source: cryptonow via X

As a sentiment sample, the comment reflects frustration among smaller investors but should not be viewed as representative of broader market positioning.

Recent chart analysis shows Ethereum moving within a descending channel from roughly $3,800 down toward $2,900 on the daily timeframe. At the same time, the Relative Strength Index (RSI) has dipped near 39, signaling short-term oversold conditions. Historically, RSI levels below 40 on the daily chart have aligned with temporary rebounds in past cycles, though not all resulted in sustained rallies.

If the current RSI reading holds and price stabilizes above trend support, a near-term bounce is possible. However, ongoing volatility risks still limit conviction.

High Leverage Adds Instability Beneath the Surface

Separate reporting from 99Bitcoins—a long-running crypto education and market research platform—highlights a surge in derivatives exposure, describing leverage levels on major exchanges as “record highs.” The platform notes that elevated leverage increases the speed and scale of price movements, particularly during periods of high liquidations.

A trader holding a $700M leveraged long in ETH and BTC suffered $55M in liquidations, wiping out nearly two months of ~$100M unrealized gains and highlighting the harsh realities of crypto leverage. Source: Draxen via X

This environment introduces both opportunity and risk. Elevated leverage can accelerate upside moves if sentiment shifts, but it can also magnify downside outcomes. Data reviewed from Coinglass liquidation charts shows that past sell-offs triggered by leverage events have erased billions of dollars in open long positions within 24-hour windows.

Despite this backdrop, whales were also seen adding more than 218,000 ETH in prior weeks, suggesting mixed positioning among large holders. This combination—outflows from some large wallets and accumulation in others—reflects indecision rather than a unified directional push.

From an analytical standpoint, elevated futures open interest and a high estimated leverage ratio may carry more immediate weight than accumulation trends. If open interest unwinds sharply, liquidations could pressure the value of Ethereum further.

Technical Views Offer Conflicting Signals

Chart specialists remain divided on the next major move. Some expect Ethereum to resume an upward structure after reclaiming diagonal support earlier in December. The recent deviation below trend line support indicates that Ethereum may have completed a Wave 4 correction and could be entering the early stages of a Wave 5 advance.

Ethereum completed its Wave 4 correction near $2,600, reclaiming support and forming a “bear trap” that could lead to a Wave 5 upward move. Source: sshussaini on TradingView

From a technical perspective, Elliott Wave structures are not predictive guarantees; rather, they serve as pattern-based frameworks that can provide context if the price reacts within expected ranges. For this scenario to gain momentum, Ethereum would likely need to maintain support above the lower boundary of the price channel and break above local resistance near $3,050.

Others see bearish signals forming on shorter timeframes, including a head-and-shoulders breakdown and a developing bearish flag. These patterns, if confirmed, typically indicate trend continuation rather than reversal. A possible drop toward stronger support near the $2,600 level suggests that downward pressure on Ethereum remains viable. Given the coexistence of opposing signals, no single pattern currently dominates. The market’s next direction may depend on liquidity flows and leverage shifts more than structural breakout models alone.

Ethereum Price Outlook

Analysts tracking the price of Ethereum describe the environment as cautiously neutral. On one hand, oversold readings, strengthening long-term support, and prior rebounds after whale outflows could support a recovery. On the other hand, persistent volatility, declining spot volume, and high-leverage positioning remain obstacles.

Ethereum was trading at around 2,974.85, down 0.20% in the last 24 hours at press time. Source: Ethereum price via Brave New Coin

For now, traders appear focused on whether Ethereum can maintain support above the lower boundary of its descending price channel. Stability above the $2,900–$3,050 zone could encourage attempts to retest resistance levels, while a breakdown may spark further liquidations.

Ethereum continues to hover around $2,980 at the time of publication—reflecting a complex blend of technical, emotional, and structural factors that shape market sentiment. While oversold conditions could support a relief bounce, analysts emphasize caution due to ongoing high-leverage exposure and thin liquidity in spot markets.