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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 movements also suggest that crypto whales might be losing confidence in ETH’s potential to deliver 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 hitting new all-time highs (ATH) – Ethereum’s journey was comparatively underwhelming.
Unlike its peers, which set fresh ATHs in 2024, Ethereum’s ATH of $4,878 remains untouched since November 2021. This highlights ETH’s relatively weaker price performance last year.
Moreover, Ethereum repeatedly failed to breach the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, ETH remains approximately 35% below its ATH.
On-chain analysis now reveals that Ethereum’s underwhelming performance is beginning to shake the confidence of its largest holders. According to an X post by crypto tracking account Lookonchain, some whales have started selling ETH at a loss.
Per 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 a seasoned market participant. 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 holds 13,959 ETH, valued at $45.48 million at current prices.
Concerns also linger regarding the Ethereum Foundation’s recurring practice of selling ETH near market tops. A recent post by 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.
Can ETH Make Amends In 2025?
Although 2024 was lackluster for Ethereum in terms of price performance, 2025 holds promise, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the US Securities and Exchange Commission (SEC) recently approved the first hybrid BTC and ETH exchange-traded funds, signaling increased mainstream acceptance.
From a technical perspective, things also appear to be improving for Ethereum. 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 break through the $4,000 resistance level.
Additionally, historical data indicates that Ethereum tends to outperform other digital assets during January following a US election year, adding to the optimism surrounding its price trajectory. At press time, ETH trades at $3,210, up 6% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X and TradingView.com
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