2025 has not started as Ethereum (ETH), the second largest digital asset by market capitalization, continues to trade below its annual market value. Recent on-chain movements suggest that cryptocurrency whales may be losing faith in ETH’s massive revenue-generating potential.
Are whales losing faith in Ethereum?
While cryptocurrencies such as Bitcoin (BTC), SUI, and Solana (SOL) have performed spectacularly in 2024, delivering outstanding returns to investors and hitting all-time highs (ATHs), Ethereum’s journey has been relatively slow. It was disappointing.
Unlike its peers, which set a new ATH for 2024, Ethereum’s ATH of $4,878 will remain unchanged since November 2021. This highlights ETH’s relatively weak price performance over the past year.
Moreover, Ethereum has repeatedly failed to breach the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, ETH remains approximately 35% lower than ATH.
Now, on-chain analysis shows that Ethereum’s disappointing performance is starting to shake the confidence of its largest holders. According to mail Some whales have started selling ETH at a loss, according to cryptocurrency tracking account Lookonchain.
According to the post, three wallets that appear to be managed by the same whale sold 10,070 ETH for 33 million DAI. The trade 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 a seasoned market participant. In December 2024, the same entity withdrew 24,029 ETH from Binance, valued at over $81 million at the time. Despite the recent sale, the whale still holds 13,959 ETH, worth $45.48 million at current prices.
There also remain concerns about a recurrence of the Ethereum Foundation. practice Selling ETH near market highs. recent mail Spot On Chain revealed that the foundation has already sold some ETH in 2025. In 2024, the organization offloaded 4,466 ETH for $12.61 million, raising questions about its timing and strategy.
Could ETH make a correction in 2025?
While 2024 was a weak year for Ethereum in terms of price-performance, 2025 is likely thanks to strengthening fundamentals and growing institutional interest in digital assets. For example, recently the U.S. Securities and Exchange Commission (SEC) Approved It is the first hybrid BTC and ETH exchange-traded fund, indicating increased mainstream acceptance.
From a technical perspective, the situation for Ethereum also appears to be improving. Recent Analysis highlights An inverse head and shoulders pattern formed on the 3-day chart, paving the way for ETH to finally break through the $4,000 resistance.
Additionally, historical data indicate Ethereum has tended to perform better than other digital assets during the January following the US election year, adding to the optimism surrounding its price trajectory. At press time, ETH is trading at $3,210, up 6% in the last 24 hours.
Featured image from Unsplash.com, X and chart from TradingView.com