2025 has not started on a strong note for ethereum (eth), as the second-largest digital asset by market cap continues to trade below its yearly open. Recent on-chain moves also suggest that crypto whales could be losing confidence in eth's potential to generate outsized returns.
Are whales losing faith in ethereum?
While cryptocurrencies like bitcoin (btc), SUI, and Solana (SOL) experienced stellar performances in 2024, delivering exceptional returns to investors and reaching new all-time highs (ATH), ethereum's journey was comparatively disappointing.
Unlike its peers, which set new ATHs in 2024, ethereum's ATH of $4,878 remains intact as of November 2021. This highlights eth's relatively weaker price performance last year.
Furthermore, ethereum repeatedly failed to break above the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, eth remains roughly 35% below its ATH.
On-chain analysis now reveals that ethereum's disappointing performance is beginning to shake the confidence of its largest holders. According to an <a target="_blank" href="https://x.com/lookonchain/status/1878626686293643481″ target=”_blank” rel=”noopener nofollow”>mail According to cryptocurrency tracking account Lookonchain, some whales have started selling eth at a loss.
According to the post, three wallets, likely controlled by the same whale, sold 10,070 eth for 33 million DAI. The transaction was executed at a market price of $3,280, resulting in a $1 million loss for the whale.
Interestingly, this particular whale appears to be an experienced participant in the market. In December 2024, the same entity withdrew 24,029 eth (worth over $81 million at the time) from Binance. Despite the recent sale, the whale still owns 13,959 eth, valued at $45.48 million at current prices.
Concerns also persist regarding recurring ethereum Foundation attacks. practice to sell eth near market highs. A recent <a target="_blank" href="https://x.com/spotonchain/status/1876945326000758887?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1876945326000758887%7Ctwgr%5E78b0cecb8f7d1eea087c765cc28f848a4d97774c%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fu.today%2Fethereum-foundation-conducts-first-eth-sale-in-2025-amid-big-price-slump” rel=”nofollow” target=”_blank”>mail of Spot On Chain revealed that the foundation already sold some eth in 2025. In 2024, the organization offloaded 4,466 eth for $12.61 million, raising questions about its timeline and strategy.
Can eth make peace in 2025?
Although 2024 was lackluster for ethereum in terms of price performance, 2025 is promising, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the United States Securities and Exchange Commission (SEC) recently approved the first hybrid btc and eth exchange-traded funds, indicating greater widespread acceptance.
From a technical perspective, things seem to be looking up for ethereum as well. Recent analysis highlights the formation of an inverse head and shoulders pattern on the 3-day chart, which could finally pave the way for eth to surpass the $4,000 resistance level.
Furthermore, historical data indicates that ethereum tends to outperform other digital assets during January following an election year in the US, adding to the optimism surrounding its price trajectory. At the time of this publication, eth is trading at $3,210, up 6% in the last 24 hours.
Featured image from Unsplash.com, x charts and TradingView.com
