Ethereum Drops Even After $15M Whale Move and Rate Spike

• A whale moved over 6000 ETH from OKX, which points to investor interest in Ethereum.
• Funding rates rose above 0.012% as long traders showed strong belief in price gains.
• Despite this, the ETH price dropped over 5%, which hints at quick profit-taking or caution.

Ethereum has experienced three major whale withdrawals totaling 6,053 ETH, worth $15.66 million, from centralized exchange OKX, according to blockchain data cited by analyst Crypto Aman on X. The transactions, made within hours of each other, came from the OKX Hot Wallet (0xA9A) and were directed to a single receiving wallet address (0x900cB07dcDD6D6E6F282D071275d84…). The transfers occurred as follows: 1,073 ETH ($2.78M), 2,704 ETH ($6.99M), and 2,277 ETH ($5.89M).

Besides the transaction scale, the timing suggests strategic accumulation, possibly by an institutional entity or high-net-worth whale. This movement occurred amid growing market speculation and increased institutional interest in Ethereum. The consistency of the withdrawals indicates intent rather than routine transfers.

Consequently, these wallet activities align with a broader trend of smart money re-entering the market ahead of potential catalysts. Crypto Aman’s post, supported by wallet data, adds credibility to this market signal. The activity may foreshadow further upward moves, assuming macro conditions stay favorable.

Funding Rates Signal Confidence as Traders Go Long

According to Coinglass, Ethereum’s OI-weighted funding rate surged past 0.012% on May 10, marking its highest level since February. This rate reflects the cost of holding leveraged long or short positions in perpetual futures markets. Higher funding rates typically indicate more traders are going long.

Source: Coinglass

From March 30 to April 26, the funding rate hovered between -0.006% and -0.008%, suggesting a period of bearish short-term sentiment. However, the momentum shifted after April 30, as funding rates began rising steadily alongside ETH’s price rally.

Moreover, ETH reached a high of $2,920 on May 15, up from under $1,800 in early April. This sharp increase aligned closely with funding data. Rates remained consistently above 0.008%, supporting the view that traders were confidently leveraging long positions.

Related: Ethereum Gas Fees Drop to $0.09, Signaling Network Uptick

Sudden 5.14% Drop Contrasts Bullish Sentiment

Despite bullish on-chain signals, Ethereum’s price fell 5.14% over the last 24 hours and is now trading at $2,472.87, per CoinMarketCap, during reporting. The asset dropped from a daily high of $2,574.7, reversing gains early on May 17. 

Also, with a decrease of 5.16%, Ethereum’s market cap fell to $298.54 billion, while the 24-hour trading volume plummeted by 15.65% to $21.79 billion. Circulating supply continues to remain at 120.72 million ETH. Yet, it is a loss to think that this drop must have taken place just days after a strong funding rate optimism, coupled with major whale accumulation. 

So, the question now remains: is the market just reacting to the macro volatility, or is it a matter of temporary profit-taking by short-term holders? Though sudden, the recent sharp decline does not negate a bullish trend seen in derivatives. If anything, it emphasizes short-term volatility and suggests there are some traders who might be repositioning on external economic signals.

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