An Ethereum whale identified as 0xB041 sold 6,237 Ethereum tokens at an average price of $3,840, totaling approximately $23.95 million, within a seven-hour window during a market downturn. The activity was flagged by Arkham Intelligence and Lookonchain, highlighting increased volatility and possible liquidation pressure in the Ethereum market.

The sale coincides with broader bearish sentiment and a short-term decline in Ethereum’s price, which hovered around $3,830 to $3,840 during the transactions. The rapid liquidation tested key support levels, raising concerns among traders about potential further downside if the support fails to hold.

On Oct. 22, Ethereum fell approximately 1.5% to trade near $3,830, affected by a general crypto market decline where eight of the top 10 cryptocurrencies were down. The weakness stemmed partly from macroeconomic concerns, including U.S. Federal Reserve interest rate decisions and geopolitical uncertainties, creating risk-off sentiment.

Despite recent volatility, Ethereum faces critical support around $3,800 and resistance near $4,000. Technical analysts note that a rebound above $4,000 could spark renewed buying interest from institutional investors, potentially reversing the current downward pressure on price.

Trading volumes for Ethereum pairs on major exchanges showed signs of reduction, reflecting cautious market participation during this price consolidation phase. The decline in trading activity suggests investors are adopting a wait-and-see approach amid uncertain macro conditions.

The drop in Ethereum price aligns with a wider crypto market pullback influenced by concerns over Fed rate hikes, regional banking stress, and weakening U.S. economic indicators. However, experts observe signs of a structural recovery as 2025 nears its final quarter, with institutional inflows into Ethereum ETFs remaining substantial.

Whale activity in the market remains high, with some whales accumulating Ethereum at dips despite this particular panic sale. The nuanced market behavior suggests liquidity events might create buying opportunities for contrarian investors willing to accumulate during periods of fear.

Analysts forecast a volatile but potentially bullish ride for Ethereum in the coming days and weeks, with price targets of around $4,000 to $4,300 by the end of October. These projections assume no adverse macroeconomic shocks materialize that could derail the recovery trajectory.

The upcoming U.S. inflation data and Federal Reserve decisions are key catalysts that could impact Ethereum price stability or volatility in the short term. Monitoring on-chain metrics like exchange inflows and outflows, active addresses, and decentralized exchange volume provides insights into market liquidity and investor behavior amid phases of price correction and consolidation.

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