Why Did Ethereum Fall? Is It a Whale Selling Signal?

▲ Ethereum (ETH), Decline/AI-generated image ©

Ethereum is facing short-term downward pressure amid large-scale movements by whales and macro variable uncertainties.

According to cryptocurrency media Watcher.guru on April 28 (local time), Ethereum (ETH) has entered a correction phase, falling by 1.3% in the last 24 hours, 1.5% over a week, and approximately 4% over 14 days. However, it has maintained a 14.1% increase on a monthly basis and a 26.6% increase since April 2025.

The direct cause of this decline is Bitcoin's correction. As Bitcoin (BTC) rose to $79,000 and then fell back to the $76,000 range, the overall market shifted to a bearish trend, and Ethereum followed suit.

In addition, whale movements have increased downward pressure. According to on-chain data, two wallets associated with Galaxy Digital moved approximately 45,000 ETH, worth about $104 million, to exchanges such as Binance, Bybit, and OKX. Generally, the movement of assets from wallets to exchanges is interpreted as a signal that increases the likelihood of selling and acts as a short-term supply increase factor.

The market interprets these movements as a risk reduction strategy ahead of the U.S. Federal Open Market Committee (FOMC) meeting. According to CME FedWatch, the probability of an interest rate freeze is expected to be 100%, but an environment of high interest rates acts as a factor that weakens the preference for risky assets, potentially burdening the overall cryptocurrency market.

However, future prospects are mixed. The Federal Reserve is scheduled to welcome new chairman Kevin Warsh in May, and there is a possibility that expectations for interest rate cuts will re-emerge. Additionally, the possibility of the U.S. cryptocurrency market structure bill, the CLARITY Act, passing is being discussed, with increased regulatory clarity cited as a variable that could improve investor sentiment. Ethereum is also likely to benefit from these environmental changes.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*