About $725 million worth of ETH has recently flowed out of Ethereum whale wallets, adding weight to expectations of a short-term decline.

On May 22, BeInCrypto reported that Ethereum traded around $2,132, posting a slight rebound from a recent low, but on-chain indicators are sending different signals by investor type.

The key is that whale outflows and accumulation by long-term holders are appearing at the same time. In terms of price action, Ethereum has been moving since March 29 within a bearish reversal pattern in the form of an inverse cup-and-handle, not an inverse head-and-shoulders. In this pattern, the cup phase ended around May 18, and the subsequent rebound is interpreted as the handle phase. Calculations suggest that if the handle breaks down, a correction of about 19% could open up.

Whale wallet moves also aligned with that trend. Santiment data show whale holdings excluding exchanges fell to 125.02 million ETH on May 22 from 125.36 million ETH on May 17. At current prices, that is worth about $725 million. The interpretation is that large holders are reducing positions as the pattern nears completion, given that whale outflows began in mid-May and the timing overlaps with the cup completion phase.

The smart money index, which gauges institutional-type fund flows, also remains in a bearish zone. The indicator is currently below its baseline, and is read as a sign that well-informed investors or institutional buying has not returned despite a slight rebound since May 18. With whale selling overlapping with smart money staying on the sidelines, the structure highlights a downside scenario in the short term.

Long-term holders moved in the opposite direction. The net position change for investors who have held for at least 155 days rose to 151,890 ETH on May 21 from 77,978 ETH on May 16. That is a 95% surge in 5 days. The original text summed it up as: "Whales are selling, smart money is waiting, and long-term holders are accumulating." It means the views of short-term and long-term investors are clearly diverging.

The short-term pivot is $2,102. That price was presented as structural support in the handle phase. If $2,102 breaks, the price could immediately slip to a cost concentration zone around $2,059. If support fails there as well, the next levels were presented as $2,017 and then $1,896, with a final measured target of $1,697. That is below the cycle low of $1,744 recorded on Feb. 6.

An upside scenario also remains. Ethereum must first rise above $2,292 for the rebound case to gain traction. BeInCrypto reported that if it then breaks above $2,462 on a daily closing basis, the current bearish inverse cup-and-handle pattern would be invalidated.