2025 did not start out well for Ethereum (ETH), as the second-largest digital asset by market capitalization is still trading below its opening price for the year. Recent on-chain activity suggests that crypto whales may be losing confidence in ETH’s potential to deliver huge profits.
Are whales losing faith in Ethereum?
While cryptocurrencies such as Bitcoin (BTC), SUI, and Solana (SOL) have performed admirably in 2024, delivering exceptional returns to investors and hitting new all-time highs (ATH), Ethereum’s journey has been slow. It was relatively overwhelming.
Unlike its peers, which have set new ATHs in 2024, Ethereum’s ATH of $4,878 has remained untouched since November 2021. This highlights ETH’s relatively weak price performance over the past year.
Additionally, Ethereum failed to break out of the stubborn $4,000 resistance level multiple times throughout 2024. Currently trading in the low $3,000 range, ETH remains approximately 35% below ATH.
On-chain analysis reveals that Ethereum’s underwhelming performance is starting to shake the confidence of its largest holders. According to X post The crypto tracking account Lookonchain caused some whales to start selling ETH at a loss.
According to the post, 10,070 ETH was sold for 33 million DAI in three wallets, presumably controlled by the same whale. The trade took place at a market price of $3,280, and Whale suffered a loss of $1 million.
Interestingly, this whale appears to be an experienced market participant. In December 2024, the same organization withdrew 24,029 ETH (worth over $81 million at the time) from Binance. Despite the recent sell-off, the whale still holds 13,959 ETH, worth $45.48 million at current prices.
Concerns also remain about the regular activities of the Ethereum Foundation. practice Selling ETH near the highest market price. recent post According to Spot On Chain, the foundation has already sold some ETH in 2025. In 2024, the group sold 4,466 ETH for $12.61 million, raising questions about its timing and strategy.
Can ETH be redeemed in 2025?
Although 2024 was lackluster for Ethereum in terms of price performance, 2025 looks promising thanks to strengthening fundamentals and increased institutional investor interest in digital assets. For example, the U.S. Securities and Exchange Commission (SEC) recently approved The first hybrid BTC and ETH exchange-traded fund, it shows increasing acceptance into the mainstream.
From a technical perspective, things seem to be improving for Ethereum. recent analysis highlights An inverted head-and-shoulders pattern has formed on the 3-day chart, potentially paving the way for ETH to eventually break through the $4,000 resistance level.
In addition, past data indicates Ethereum has tended to outperform other digital assets in January of the US election year, further increasing optimism surrounding its price trajectory. At the time of writing, ETH is trading at $3,210, up 6% in the past 24 hours.
Featured image from Unsplash.com, chart from X and TradingView.com
