Ethereum Whales Withdraw $29M Amid Bearish Market Conditions

Whale Wallets Pull Millions Off Exchanges

Ethereum whales extracted 13,002 tokens worth $29.09M from FalconX and OKX Thursday morning according to on-chain transaction records monitored by Lookonchain. Specifically, one major whale account removed 9,625 tokens valued at $21.57M from FalconX. A newly created wallet withdrew an additional 3,377 tokens worth $7.52M from OKX. These large transfers reduced available exchange inventory despite prevailing spot price weakness. Spot netflow data from CoinGlass registered -$35.45M as total withdrawals exceeded deposits across primary venues.

The negative netflow reading extended an ongoing trend of exchange outflows throughout October. These sustained inventory drains reduced immediate selling supply on order books. However, the heavy withdrawals failed to trigger an immediate upward price response. Traders absorbed the data cautiously as spot prices continued hovering near the lower boundary of a descending channel.

Derivatives Markets Flip Toward Short Positions

Derivatives order books registered a sharp reversal in trader sentiment as perpetual swap positioning turned aggressively defensive. CoinGlass figures confirmed that the OI-weighted funding rate plummeted to -0.0097% during the session. This negative reading marked an abrupt shift from predominantly positive funding rates recorded earlier in the month. Short traders paid long positions to maintain exposure, signaling strong expectations for continued downward movement.

The negative funding rate reflected high demand for short inventory across derivatives venues. Market participants positioned themselves for further downside despite the heavy spot withdrawals recorded by on-chain analysts. Yet, heavily negative funding rates occasionally leave the market exposed to sudden squeezes if unexpected spot buying forces short liquidations.

Technical Indicators Confirm Persistent Downward Pressure

Price action broke beneath the $2,300 threshold earlier in the week as persistent selling drove the asset down to $2,240 at press time. The daily chart structure placed the asset directly above the $2,200 support floor. Buyers must defend this specific technical boundary to prevent deeper retracements toward lower liquidity zones. Selling momentum remained dominant across multiple timeframes.

Momentum oscillators verified the extent of the recent sell-off. The RSI dropped down to 29.78 to enter oversold territory. The MACD indicator maintained a bearish posture below its signal line with a negative histogram confirming seller control. Bulls faced an immediate battle to reclaim lost ground.