Ethereum's Wild Ride: Whales, Fees, and a Potential Supply Shock

Ethereum's Transaction Costs Plunge to Record Lows

Ethereum fees have declined to an all-time high of approximately $0.46 on March 24, 2025, from reduced on-chain activity that has led to reduced ETH burning and an estimated annual supply growth of 0.76%. This move towards inflationary pressure is a consequence of reduced active addresses and rising competition from Layer 2 solutions and other lower-fee and quicker blockchains

Whale Watching: Massive ETH Transfers and Strategic Accumulation

Ethereum's market has seen a tremendous amount of whale action in recent history, like an ungodly 43,504 ETH transaction to Kraken on 17 Mar 2025, and the Bybit depositing 120,000 ETH into Kraken on 20 Mar 2025, and an inactive whale depositing 7,000 ETH into Kraken this month. Even during these transfers, Ethereum whales holding 10,000 to 100,000 ETH have accumulated their reserves by 12% since the start of 2025, and nemorino.eth just made profits of approximately $287,000 trading ETH, showing both shrewd plays by large-scale investors and potential shifts in market dynamics.

Exchange Exodus: Ethereum Supply Dwindles Amid Long-Term Holding

Ethereum supply on centralized exchanges has fallen to a 10-year low, with only 8.97 million ETH in custody, down 16.4% from the close of January 2025, as investors transfer funds to private wallets for long-term holding. Accumulation addresses in March 2025 purchased 2.11 million ETH, which is a reflection of strong buying demand, particularly when ETH prices were oscillating below $2,000.

This decline in exchange supply implies a possible "supply shock," which, combined with enhanced accumulation, may create upward price pressure if demand stays steady or improves, prompting analysts to remain hopeful for a possible future price rally. Stakeholders will be paying close attention to these signs to determine possible price action and broader market sentiment

Technical Analysis: Resistance and Support Levels for Ethereum

ETHUSD trades weak following the footsteps of BTC. Overall trend remains bearish as long as the resistance of $3000 remains intact. The key near-term resistance is at $2300 any breach above targets $2500/$2770/$3000/$3400/$3600/$3800/$4000. A robust bullish trend will only materialize above $4100.

Immediate support is around $1750. Any violation below will drag the price down to $1450. A breach below $1450 could see Ethereum plummet to $1000.

It is good to buy on dips around $1800 with a stop loss of around $1450 for a TP of $2770/$3000.