Ethereum fell another 1.2% on Friday to $2,311, extending a 3.6% decline since May 10 as a falling channel that's held since mid-April keeps the pressure on. But while the price has slipped, large holders have been scooping up coins: whales bought roughly 360,000 ETH worth $832 million during the dip, pushing whale supply (excluding exchange wallets) from 124.69 million to 125.05 million ETH. The buying hasn't been enough to reverse the trend, and there are signs the accumulation is narrowing to a smaller group.
Whale accumulation during the dip
The whale cohort expanded its stash by about 360,000 ETH over the past week, a notable sum for a period when the broader market was selling. The move suggests some large players view the current range as a discount zone. Whale supply excluding exchanges now sits near 125.05 million ETH, up from 124.69 million before the slide began. That's a clear divergence from the price action — whales buying while retail and short-term traders pare back.
Futures market shows shorts closing
Open interest in Ethereum perpetual futures has dropped from $12.46 billion on May 7 to $11.98 billion by May 12, a decline of about $480 million. At the same time, the funding rate actually ticked up to 0.012% from 0.010% on May 7. That combination — lower open interest but a higher funding rate — points to shorts closing positions rather than new longs piling on with leverage. It's not a bullish signal per se, but it means the selling pressure from liquidated shorts has subsided for now.
Hodler momentum fades
While the whale data looks encouraging, the broader picture for long-term holders is less rosy. The Ethereum hodler net position change peaked at 383,128 ETH on April 27 and has since dropped to 77,675 ETH by May 11 — an 80% decline. Long-term holders are still net buyers, but the pace has slowed to about one-fifth of what it was in late April. That suggests the dip-buying is concentrated among the largest wallets, while the typical hodler is becoming more cautious.
Key technical levels to watch
On the daily chart, Ethereum is hugging the lower end of a falling channel that has guided price action since April 17. Immediate support sits at $2,298 (the 0.5 Fibonacci retracement) and $2,269 (the 0.618 level). A break below $2,269 opens the door to $2,227 and then $2,174. If $2,174 fails, the chart turns decisively bearish. On the upside, reclaiming $2,327 would bring the market back to neutral, and a move above $2,363 opens a short-term target of $2,422. That's about 4.8% above current prices — a modest rally that would still leave ETH below where it started the week.
