Dormant Ethereum Whale Offloads 73,000 ETH, as Ethereum Struggles to Break $3,500

A dormant Ethereum whale has resurfaced, sparking intrigue as the price of the world’s largest altcoin rallies amidst a broader market surge.

According to Lookonchain, this whale amassed 398,889 ETH – worth $2.4 million at the time – between January 18 and March 10, 2016, at an average price of just $6 per ether. The wallet had remained inactive for over eight years until November 7, 2024, when it began offloading its holdings.

So far, the whale has sold 73,356 ETH, which is currently valued at $224.42 million. Following the sale, its stash has reduced to 325,533 ETH, still worth a staggering $1.1 billion. The whale’s reactivation has fueled speculation about its motives and the potential impact of such significant sell-offs on Ethereum’s price.

Ethereum’s Underwhelming Rally

Despite Ethereum’s impressive 30% surge over the past month, the price has struggled to break through the crucial $3,500 mark, significantly below its all-time high above $4,800 set in 2021. This lack of momentum has likely contributed to the whale’s decision to sell, signaling a loss of confidence in ETH’s short-term potential for further price appreciation.

With Ethereum remaining well below its peak, the whale’s actions suggest skepticism about a strong uptrend, leading to the strategic liquidation of a substantial portion of its holdings.

Meanwhile, CryptoQuant’s latest report signals “unstoppable bullish momentum” in the Ethereum derivatives market. Data suggest that ETH’s open interest blew past its previous all-time high, now exceeding $13 billion – a 40% increase in just the past four months. This surge in open interest reflects growing participation in Ethereum’s derivatives market.

The funding rates are currently moderately positive, which indicates that long-position traders dominate. This suggests a market sentiment favoring an uptrend in the short term. Additionally, Ethereum’s estimated leverage ratio has reached a new all-time high of over 0.40, indicating a rise in leveraged positions as investors engage in more risk-taking within the derivatives space.

Ethereum Rival Solana Hits ATH

Ethereum rival Solana (SOL) reached a new all-time high of $263 on November 22nd, surpassing its previous peak over three years ago. The token’s journey was tumultuous, especially after the collapse of the FTX exchange, which caused SOL’s price to drop sharply to single digits in late 2022.

A slow 2023 followed, complicated by the SEC’s assertion that SOL was a security, which raised regulatory concerns. However, following an explosive growth phase, Solana has made a remarkable comeback, setting a new price record.