Dormant Ethereum wallets move billions as market pressure builds
Long-inactive Ethereum wallets moved 37,806 ETH this week, marking one of the largest reactivations of early holdings since 2017, as Ethereum traded slightly above $1,500. The activity comes as onchain data shows long-term large holders slipping into negative profitability for the first time since 2019, signaling mounting pressure across major cohorts.
Early holders cash out after years of inactivity
Blockchain analytics reveals that four wallets holding 37,602 ETH for nearly eight years became active and sold most of their holdings. Around 33,623 ETH was offloaded for roughly $52.5 million at an average price of $1,560, generating an estimated $27.4 million in profit.
The return of these dormant wallets adds fresh supply to the market and highlights profit-taking among early adopters who accumulated Ethereum at significantly lower prices.
Large holders rotate and accumulate despite losses
While some older holders are exiting, other large market participants are building positions. One whale swapped 464 BTC, worth about $27.6 million, for 17,750 ETH, indicating a shift from Bitcoin to Ethereum among high-value portfolios.
Additional accumulation came from Chun Wang, who purchased 9,937 ETH and 147 wrapped Bitcoin. His total Ethereum withdrawals for the month reached about 87,000 ETH at an average price of $1,749.
Institutional flows also showed movement, with 41,996 ETH and 4,577 BTC transferred to a custodial platform. These transfers are widely viewed as operational reallocations rather than immediate selling activity.
Long-term holders fall below cost basis
Market data indicates that all major tiers of large Ethereum holders, ranging from 1,000 ETH to over 100,000 ETH, are now holding at unrealized losses. This is the first time since 2019 that these groups have collectively fallen below their cost basis.
Historically, such conditions have aligned with periods of weak sentiment and, in some cases, longer-term price bottoms as selling pressure exhausts and accumulation gradually resumes.
Ethereum holds key support as downside risks remain
Ethereum dropped to around $1,510 during recent trading before stabilizing slightly, continuing to defend the $1,500 level that has held through multiple corrections since mid-2022. This zone remains one of the asset’s longest-standing support areas.
Technical analysts warn that a sustained break below $1,500 could reopen downside ranges last seen in early 2023. Some point to the $1,070 to $1,370 range as a potential accumulation zone, noting that a move into this region would push Ethereum below its multi-year ascending trendline and extend the broader downtrend.
At the same time, indicators such as the 14-week Relative Strength Index suggest deeply oversold conditions, signaling that while selling pressure dominates, momentum could be nearing exhaustion even as risks remain elevated.
Unsure how to react to whale moves? Learn how to use the Crypto Fear and Greed Index for rational Ethereum decisions.
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