2025 hasn’t started on a good note for Ethereum (ETH), as the second-largest digital asset by market capitalization continues to trade below its annual open. Recent on-chain movements also suggest that crypto whales may be losing confidence in ETH’s potential to generate outsized returns.
Are whales losing faith in Ethereum?
While cryptocurrencies like Bitcoin (BTC), SUI, and Solana (SOL) have performed exceptionally well in 2024 – delivering exceptional returns to investors and hitting new all-time highs (ATH) – Ethereum’s journey has been relatively disappointing.
Unlike its peers, which set new ATHs in 2024, Ethereum’s ATH of $4,878 remains unchanged since November 2021. This highlights ETH’s relatively weaker price performance over the past year.
Additionally, Ethereum has repeatedly failed to breach the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, ETH remains around 35% below of his ATH.
On-chain analysis now reveals that Ethereum’s disappointing performance is starting to shake the confidence of its largest holders. According to an job Thanks to crypto tracking account Lookonchain, some whales have started selling ETH at a loss.
According to the post, three wallets – likely controlled by the same whale – sold 10,070 ETH for 33 million DAI. The trade was executed at the market price of $3,280, resulting in a loss of $1 million for the whale.
Interestingly, this particular whale appears to be a seasoned player in the market. In December 2024, the same entity withdrew 24,029 ETH – worth over $81 million at the time – from Binance. Despite the recent sell-off, the whale still holds 13,959 ETH, valued at $45.48 million at current prices.
Concerns also remain regarding recurring issues at the Ethereum Foundation. practical to sell ETH near market highs. A recent job by Spot On Chain revealed that the foundation had already sold ETH in 2025. In 2024, the organization sold 4,466 ETH for $12.61 million, raising questions about its timeline and strategy.
Can ETH make amends in 2025?
Although 2024 was lackluster for Ethereum in terms of price performance, 2025 looks promising, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the United States 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 appear to be improving for Ethereum as well. Recent analysis strong points forming 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 noted that Ethereum tends to outperform other digital assets in January following a 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, charts from X and TradingView.com
