Is Ethereum Price Crash Brewing as ETH Whales Sell Despite Two Capitulation Events?

Ethereum (ETH) whales have been offloading their holdings since mid-March, after two massive capitulation events in the past 20 days. Will this behavior push Ethereum price to crash below $2,000? Is this a short-term panic from ETH whales, or will this become a trend that kickstarts a deep crash?

Ethereum Price Likely to Crash as Whales Sell ETH

According to data from Santiment, Ethereum whales holding between 1000 to 10,000 ETH offloaded 110K tokens worth $214M at the current ETH value of $1,950 per ETH.

Likewise, 10K to 100K addresses shed 380K worth $741M and 100K to 1M cohort reduced their holdings from 19.59M to 19.2M ETH. 

This en masse sell-off from high net worth investors indicates a bearish outlook and hints at an incoming crash for Ethereum price. 

Why does this matter? Typically, whales sell during uptrend but not after huge crashes or capitulation events. Data from Santiment shows two major capitulation events on March 7 and March 21, where large quantities of ETH were sold at loss. During such events, whales tend to buy, which makes the current whale sell-off since mid-March unusual.

Does this hint at a bearish Ethereum price forecast? Let’s explore ETH price analysis and analysts’ take on the current outlook.

Ethereum Price Analysis

Does this mean Ethereum price will crash below $2,000? Due to the increased selling pressure and uncertain outlook from Bitcoin (BTC) price, there is a high chance ETH price will crash below $2,000.

Wfls with an X username wafxles posted a short position on ETH with a target of $1,930. 

what are the odds pic.twitter.com/ddLkRNf2ds

— wfls (@wafxles) March 26, 2025

Another X user posted “Ethereum not looking good for bulls here anon,” showing a breakdown of an up-trending line, suggesting the start of a downtrend.

$ETH #Ethereum Not looking good for bulls here anon. pic.twitter.com/Xm2bguneXH

— The Cryptomist (@Thecryptomist) March 26, 2025

Based on the Time Price Opportunity (TPO) chart, the next key level to watch is the value area, extending from $1,926 to $1,875. The upper range of the value area at $1,926 also coincides with poor lows, aka liquidity, making it a good place for booking profits, if investors have entered short position.

The recent sell-off from Ethereum whales, despite two capitulation events, is a bearish indicator that hints at an incoming crash for Ethereum price. With increased selling pressure and an uncertain outlook from Bitcoin (BTC) price, there is a high chance that ETH price will crash below $2,000. Investors should exercise caution and consider the potential risks and opportunities in the market.

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