Ethereum Whales Buy $1.6 Billion as Co-Founder Moves ETH to Kraken

Introduction

Ethereum price faces renewed downside pressure after a reported deposit by co-founder Jeffrey Wilcke to Kraken and simultaneous whale accumulation. Per Lookonchain, Wilcke moved roughly $5.99 million in ETH to Kraken as ETH hovered near $3,950—often a precursor to selling—while 15 wallets, including Galaxy Digital, BitGo, and FalconX, bought 406,117 ETH (~$1.6 billion) during the dip. This push-pull between potential insider selling and aggressive whale purchases sets up a volatile near term for ETH price action and liquidity.

Technical analysis highlights a critical Ethereum support at $3,900 after losing $4,050, with ETH down ~13% on the week and ~2% daily at press time. If ETH closes below $3,900, analysts see room for an additional 11.5% decline toward the next support near $3,400. Bollinger Bands have widened with price at the lower band—signaling potential oversold conditions and a possible relief bounce—while the ADX near 20 suggests trend strength remains weak.

Overall, ETH sits at a make-or-break level as mixed on-chain signals collide with bearish momentum. A sustained hold above $3,900 could invite short covering and a rebound, while a breakdown risks accelerating toward $3,400 despite whale accumulation. Traders watching ETH whales, exchange inflows, and daily closes around these levels may gain an edge in timing.  

Background

While short-term price action remains volatile, the underlying question is whether Ethereum’s fundamentals remain intact. Whale buying of $1.6 billion in ETH shows long-term confidence from institutional players, even as insider deposits trigger market jitters. According to Glassnode, institutional involvement in Ethereum has grown consistently since the Merge, with ETH increasingly viewed as a yield-bearing asset thanks to staking rewards on the Ethereum 2.0 network.

Meanwhile, Ethereum continues to dominate DeFi (Decentralized Finance) and NFT ecosystems, securing over $50 billion in total value locked (TVL) across protocols as of September 2025 (DefiLlama data). However, scalability remains a challenge, with Layer-2 solutions (Arbitrum, Optimism, Base) processing a rising share of transactions as Ethereum gas fees fluctuate.

In the broader market outlook, investors should closely watch:

• Daily closes relative to $3,900 support.

• Exchange inflows and potential confirmation of co-founder Wilcke’s transfer as a sell-off or simply a wallet reshuffle.

• Continued whale accumulation, which often precedes medium-term rallies.

If Ethereum can defend its support levels and maintain whale interest, a rebound may follow. But if bearish sentiment dominates, traders should prepare for a possible retest of the $3,400 support zone.