Can whale demand absorb Ethereum's $168M ETF exodus?

So, price action deteriorated further. Ethereum [ETH] fell to nearly $1,600 as sellers continued overwhelming demand. As the decline deepened, the daily RSI dropped to 13.96, a level typically associated with capitulation rather than routine corrections. The decline suggests sellers have continued to overwhelm available demand. While such extreme RSI readings often precede relief rallies, they do not guarantee a trend reversal. Until ETF flows stabilize and buyers begin absorbing supply more aggressively, Ethereum may remain vulnerable despite short-term signs of exhaustion.

Ethereum's decline has started attracting aggressive dip-buying from large holders. One whale spent $55.8 million acquiring 35,723 ETH near $1,563 after previously selling 60,000 ETH and 9,442 wstETH around $2,040. Meanwhile, another investor borrowed $142 million in Tether [USDT] from Aave [AAVE] and accumulated 87,680 ETH at an average price of $1,620. The activity suggests some large holders view current prices as attractive despite persistent market weakness. However, the leveraged position carries a health factor of 1.16 and faces liquidation near $1,354, making Ethereum's next move increasingly important for whether this conviction proves correct. At 1.16, the margin between conviction and liquidation is measured in wicks.

Ethereum's selloff has not unfolded in a vacuum. While ETF investors have continued pulling capital from the market, on-chain data shows other participants stepping in. Exchange Reserves remain near multi-year lows around 15 million ETH, while large holders continue withdrawing coins and adding to positions during the decline. Yet not all of that demand looks the same. Some buyers are using borrowed capital to accumulate ETH through lending protocols such as Aave. That explains why buying interest has persisted despite weeks of institutional outflows.

The market now faces a different question. Whales appear willing to absorb supply, but leveraged demand is far less stable than spot accumulation. Whether that buying can offset ETF selling remains one of the key forces shaping Ethereum's next move.