TLDR
- Over 105K ETH moved from Kraken to 8 wallets, sparking speculation on market direction.
- ETH holds above $2,400 after major whale transfer, signaling potential volatility.
- Analysts split: ETH could hit $3,000 if support holds, or face delays in gains.
- Technical indicators show bullish momentum, but caution near resistance is advised.
- ETH volume recovering in May after April dip, hinting at cautious market re-entry.
A significant Ethereum transaction shifted 105,736 ETH from Kraken to eight wallets within 30 minutes of a large inbound deposit. The coordinated move raised speculation around market timing and future price direction. This activity follows ETH’s climb from April lows and comes as analysts share conflicting outlooks.
Ethereum Sees Major Whale Movement After Kraken Deposit
On-chain data recorded a whale transfer of 105,736 ETH soon after funds landed on Kraken. The ETH was moved to eight different wallets, suggesting a planned action rather than random withdrawals. Such volume changes often signal strategic asset repositioning by large holders.
Within 30 minutes of these ETH being transferred to Kraken, another 105,736 ETH were transferred out from Kraken to 8 new addresses.https://t.co/dFkVNL87Q2
— Wu Blockchain (@WuBlockchain) May 20, 2025
This move comes as ETH remains above $2,400 despite brief pullbacks. Large wallet activity typically impacts short-term price behavior. While no immediate price crash occurred, the scale and timing suggest growing anticipation of market volatility.
The event also coincides with a broader recovery in ETH price. Traders now consider whether this whale move aligns with bullish positioning or preparation to exit at local highs. Either outcome could shape Ethereum’s short-term trajectory.
Analysts Offer Views on Ethereum’s Next Move
Michaël van de Poppe believes ETH must hold its current level to rally toward $3,000 soon. If it breaks below support, a delay in upside movement could follow.
For $ETH, it’s approaching the area to hold.
If that holds, we’ll find our way up. I think we’ll see $3,000 quite soon. pic.twitter.com/QBhbyQMKfE
— Michaël van de Poppe (@CryptoMichNL) May 20, 2025
While long-term sentiment remains mostly optimistic, short-term forecasts depend on support zones holding. The next few sessions may determine whether ETH retests highs or consolidates further.
Technical Indicators Confirm Uptrend but Warn of Reversal
ETH showed a recent decline to around $2,480.82, yet the overall market structure stays bullish. Ethereum rallied from below $2,000 in April and reached over $2,500 in May. The Relative Strength Index (RSI) now stands at 65.18, nearing overbought territory.
Source: Tradingview
MACD readings remain positive, with the MACD line at 191.98 above the signal line at 188.99, suggesting momentum still favors buyers. However, analysts urge caution as momentum may fade near key resistance zones.
Volume remains steady around 20K, reflecting consistent market activity. While these indicators support continued strength, a break below current levels could quickly shift market sentiment. Traders are closely monitoring for dramatic breakout confirmation.
Ethereum Volume Recovers as Price Attempts Stabilization
ETH volume surged early this year, peaking at over $120 billion in March before the price climbed above $4,000 due to strong market momentum. However, volume experienced a sharp decline in April as the price retreated.
Source: Coinglass
Following a dip below $3,000 as market interest cooled, May brought a modest recovery. Trading activity has regained traction, and the price has rebounded toward $2,500. These volume improvements hint that traders are cautiously re-entering the market, albeit with some reservations.
The interplay of technical indicators, whale transfers, and analysts’ projections creates a tense atmosphere. If Ethereum can maintain its current support level, renewed momentum may propel it higher. However, a failure to do so might result in prolonged consolidation around the $2,400 to $2,500 region.
