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

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

Ethereum has faced short-term downward pressure amidst large-scale movements by whales and macroeconomic uncertainty.

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

The direct background for 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 this trend.

Adding to this, whale movements amplified the 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 of increased selling potential and acts as a factor for short-term supply increase.

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 analysis suggests that a high-interest rate environment could weaken the preference for risky assets, putting a burden on the overall cryptocurrency market.

However, future prospects are mixed. The Federal Reserve is scheduled to welcome new chairman Kevin Warsh in May, and expectations for interest rate cuts may re-emerge. Additionally, the possibility of the passage of the U.S. cryptocurrency market structure bill, the CLARITY Act, is being discussed, with increased regulatory clarity identified as a variable that could improve investor sentiment. Ethereum is also expected 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. The content should be interpreted for informational purposes only.*