The price action of Ethereum’s native token (ETH) is at a critical juncture following significant sell-offs from early investors, challenging its break of the $3,700 mark.
According to the on-chain analytics platform Lookonchain, one notable consideration is the recent activity of a dormant whale that began offloading its substantial Ether holdings after over eight years of inactivity. Lookonchain noted that the investor accumulated 398,889 Ether at an average price of $6.
A whale that accumulated 398,889 $ETH(currently worth $1.34B) at an average price of ~$6 is selling $ETH again!
This whale accumulated 398,889 $ETH(then worth $2.4M) between Jan 18 and Mar 10, 2016, at an average cost of ~$6 per $ETH.
After remaining dormant for over 8 years,… pic.twitter.com/9rfw1IrdRt
— Lookonchain (@lookonchain) November 22, 2024
Dormant Ethereum Whale Address Becomes Active Again
The whale began selling its holdings on Nov. 7, and as of this writing, they have sold a total of 73,356 ETH, worth $224.42 million. Despite the sales, the whale still holds 325,533 ETH.
Furthermore, the timing of the whale’s resurgence coincides with bullish movements in the broader crypto market, including Bitcoin’s (BTC) rally above $98,000. The increases in BTC’s price, which set a new monthly performance record, have fueled speculation of a comparable rise among altcoins, including Ethereum.
Selling Pressure from Early Investors
Meanwhile, several factors affect Ethereum’s price dynamics beyond the dormant whale’s action. Interchain, the company behind Cosmos, is another source of selling pressure.
The developer has sold its Ether assets since participating in Ethereum’s initial coin offering (ICO) in 2017. On Nov. 22, Interchain sold 3,000 Ether, worth more than $10.1 million.
This transaction adds to the 21,600 ETH it has sold since April 2024, totaling more than $95 million. The firm’s ETH sales have been at an average price of $2,591 per coin.
Despite these sales, the address still has more than 17,000 ETH, worth over $57 million, indicating the possibility of more market activity, as indicated by data from the on-chain analytics platform Arkham Intelligence.
Cosmos Network’s Crypto Holdings. | Source: Arkham Intelligence
Bullish Indicators Suggest a Strong Rebound
Meanwhile, a recent study by investment management firm Rekt Capital revealed that ETH could soon embark on a brief bullish run and breach the $3,700 barrier. The historical association between Ethereum and Bitcoin also contributes to the possibility of a strong rally.
Furthermore, Ethereum’s long-term value proposition is still rooted in its robust foundations, which include its expanding use in non-fungible tokens (NFTs) and decentralized finance (DeFi).