Idle 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 altcoins rebounds amid a rally in the broader market.

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 portfolio remained dormant for more than eight years until November 7, 2024, when it began offloading its holdings.

To date, the whale has sold 73,356 ETH, which is currently valued at $224.42 million. After the sale, his stash is down to 325,533 ETH, which is still worth a staggering $1.1 billion. The reactivation of the whale has fueled speculation about its motives and the potential impact of such large sales on the price of Ethereum.

Ethereum’s underwhelming rally

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

With Ethereum holding well below its high, 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 indicates “unstoppable bullish momentum” in the Ethereum derivatives market. The data suggests that ETH open interest surpassed its previous all-time high, now exceeding $13 billion, a 40% increase in the past four months alone. This increase in open interest reflects growing participation in the Ethereum derivatives market.

Funding rates are currently moderately positive, indicating that long position holders dominate. This suggests a market sentiment that favors a short-term bullish trend. Additionally, Ethereum’s estimated leverage ratio has reached a new all-time high of over 0.40, indicating an increase in leveraged positions as investors take more risk in the derivatives space.

Ethereum rival Solana comes to ATH

Ethereum rival Solana (SOL) hit a new all-time high of $263 on November 22, surpassing its previous high more than three years ago. The token’s journey was tumultuous, especially after the collapse of the FTX exchange, which caused the price of SOL to plummet to single digits by the end of 2022.

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

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