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Assessing Whether Whale Demand Can Absorb Ethereum’s $168 Million ETF Outflow
The series of outflows from Ethereum ETFs continues to weigh on demand. Spot $ETH ETFs recorded another weekly outflow of $168.2 million, extending the withdrawal streak to four consecutive weeks. With institutional demand declining, Ethereum has lost a source of liquidity that had previously absorbed supply during market downturns.
Source: SoSoValue.
As a result, price action has deteriorated further. Ethereum ($ETH) fell close to $1,600 as selling pressure continued to outweigh demand.
As the downturn deepened, the daily RSI fell to 13.96, a level usually associated with capitulation rather than ordinary corrections. Moreover, the decline suggests that sellers continue to overwhelm available demand.
Source: $ETH/USD on TradingView.
Although such extreme RSI readings often precede relief rallies, they do not guarantee a trend reversal.
Until ETF flows stabilise and buyers begin absorbing supply more aggressively, Ethereum may remain vulnerable despite signs of short-term seller exhaustion.
Whales Accumulate as Liquidation Risk Rises
Ethereum’s decline has started to attract large holders, who are aggressively buying $ETH. One whale spent $55.8 million to acquire 35,723 $ETH at around $1,563, after previously selling 60,000 $ETH and 9,442 wstETH at around $2,040.
Meanwhile, another investor borrowed $142 million in Tether (USDT) through Aave (AAVE) and accumulated 87,680 $ETH at an average price of $1,620. This activity suggests that some large holders view current prices as attractive despite continued market weakness.
Source: X.
However, the leveraged position has a health factor of 1.16 and faces liquidation risk near $1,354, making Ethereum’s next move increasingly important in determining whether this conviction proves correct.
What Comes Next for Ethereum?
Ethereum’s sell-off has not unfolded in a vacuum.
Although ETF investors continue to withdraw capital from the market, on-chain data shows that other participants are stepping in. Exchange reserves remain near multi-year lows, at around 15 million $ETH, while large holders continue to withdraw coins from exchanges and add to positions during the decline.
However, not all of this demand looks the same. Some buyers are using borrowed capital to accumulate $ETH through lending protocols such as Aave. This explains why buying interest remains present despite weeks of institutional outflows.
The market now faces another question. Whales appear willing to absorb supply, but leveraged demand is far less stable than spot accumulation. Whether this buying can offset ETF selling remains one of the key factors shaping Ethereum’s next move.
Final Summary
Ethereum ($ETH) remains caught between persistent ETF outflows and growing whale accumulation, making demand absorption a key test for the market.
Whale buying of Ethereum continues to support the market, but leveraged positions keep liquidation risks elevated near critical levels.
See also: "Bitcoin Rises Above $62,000 After Sharp Sell-Off"
