Ethereum has been hovering around the $2,500 mark in recent days, exhibiting minimal momentum in either direction. The second-largest cryptocurrency by market capitalization has faced challenges in maintaining a breakout above the $2,600 resistance level, despite a surge of inflows into Ethereum Spot ETFs last week.
One development that has generated both interest and concern among Ethereum investors is the reactivation of a dormant whale wallet that contains millions of dollars worth of ETH. This sudden activity from a long-inactive address raises questions about potential selling pressure and its possible impact on the market.
According to on-chain tracker Whale Alerts, a pre-mined Ethereum address that had been inactive for nearly a decade initiated its first transaction since 2015. The wallet, which previously held 2,000 ETH, last moved any funds 9.9 years ago. At that time, the entire amount was valued at only $620, whereas it is now worth over $5 million, translating to an astonishing profit of approximately 820 times based on current prices.
The alert from Whale Alerts highlighted that the first transaction from this dormant address involved transferring 0.0001 ETH to a newly created wallet. Etherscan’s transaction data later revealed that the whale address subsequently moved 500 ETH to this new address. These 500 ETH were then traced to an address known to be owned by the cryptocurrency exchange Binance, suggesting they might have already been sold or are in the process of being liquidated.
Currently, the original whale wallet still contains around 1,500 ETH, valued at approximately $3.796 million. This situation raises the question of whether the remaining funds will also be liquidated. Although a full liquidation is not guaranteed, the pattern of the previous transfer and the involvement of an exchange address indicate that this possibility cannot be overlooked.
As it stands, Ethereum is experiencing fragile price action near the $2,500 level. If the whale decides to offload more ETH, the resulting selling pressure could hinder Ethereum's ability to break free from its current consolidation phase, particularly if buying interest is insufficient to absorb the additional supply.
At the time of this report, Ethereum's trading price is $2,525, with fluctuations occurring between $2,549 and $2,495 over the past 24 hours.
