Two large Ethereum (ETH) holders routed a combined $423 million worth of the asset to exchanges this week, fueling concern that a fresh sell-off is being prepared.
Whale Deposits Hit FalconX, Binance
Four wallets tied to Paradigm Capital moved 11,615 ETH, valued at roughly $27.29 million, into prime broker FalconX, blockchain tracker Lookonchain flagged on May 7.
Hours later, a wallet linked to Garrett Jin, the founder of failed exchange BitForex, sent 166,023 ETH worth about $396 million to Binance.
Onchain Lens said the same address still holds 381,695 ETH, valued near $900 million.
ETH had already closed lower for two consecutive sessions before the transfers landed. The asset bounced off $2,300 support at the time of the deposits, after a clean rejection at $2,400 on May 6.
Also Read: Ethereum Targets $2,400 As Binance Futures Momentum Turns Bullish
Analysts Eye Sell-Side Risk
Deposits to centralized exchanges typically signal preparation to sell, since holders need liquid venues to exit positions. Neither party has confirmed an outright disposal.
Jin has form here. He unloaded 261,024 ETH worth $543 million on Binance in February, splitting the move into three tranches to reduce slippage.
CryptoQuant data showed Ethereum's Exchange Netflow climbed to 160,900 ETH on May 6, with 983,300 ETH flowing into trading platforms. The Coinbase Premium Index has stayed negative for 10 straight days, an indicator that U.S. institutional buyers have stepped back.
Exchange Supply Ratio also ticked up from 0.121 to 0.122, a small but telling shift that confirmed sellers were dominant. The Directional Movement Index formed a bearish crossover, with +DI sliding below ADX, which suggested upside momentum was fading even as the broader trend held.
ETH Price Swings Recap
Ethereum has had a turbulent year. The token traded above $2,800 in early February before sliding under $2,000, weighed down partly by Jin's $543 million Binance deposit and selling from co-founder Vitalik Buterin.
ETH then stabilized near $2,050 as BlackRock and Cathie Wood's Ark Invest added exposure through ETF products. By early May, the token had clawed back to $2,372 before this week's rejection at $2,400 sent it back toward $2,300.
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