Dormant ETH Whale Resurfaces, Transfers 7,000 ETH to Kraken Amid Price Drop

Ethereum (ETH) Prices Plummet
Ethereum (ETH) has dropped below the $2,000 mark, erasing $46 billion in market value within a week. This decline brings ETH to the $1,900 range for the first time in two years. With a 10.64% weekly decline, ETH is the weakest performer among large-cap cryptocurrencies. However, with the RSI in oversold territory and trading volume increasing by 47%, this may present a “dip-buying” opportunity.

Dormant ETH Whale Awakens

A notable event in the Ethereum market occurred as a dormant ETH whale, inactive since the initial coin offering (ICO), reemerged, transferring 7,000 ETH (approximately $13.8 million) to Kraken. This transaction coincided with ETH’s drop to $1,760—its lowest level since October 2023.

Despite a recovery to $1,900, the whale still retains 30,070 ETH (around $50 million). If further selling occurs, ETH may experience deeper corrections, which appears increasingly probable in the near term.

Declining exchange reserves indicate accumulation, but a broader market downturn and rising liquidations could threaten ETH’s recovery. Over $110 million in ETH long positions were liquidated in just the past 24 hours. Furthermore, negative funding rates on three of the six top exchanges suggest that short-sellers are gaining control.

Adding to the negative sentiment, the 180-day dormant circulation surged when ETH fell below $2,100, indicating a notable increase in sell-offs from long-term holders. This trend aligns with a risk-off market environment, contributing to a distribution phase and further applying pressure on ETH’s short-term price action.

Identifying Key Support Zone

Ethereum has fallen below its realized price for the first time in two years, causing the average holder to experience an unrealized loss. Currently trading at $1,917, ETH is below the realized price of $2,058, with an MVRV ratio of 0.93, reflecting a 7% network-wide unrealized loss. Historically, dips below the realized price signal capitulation zones.

With dormant ETH whales now selling off, this trend appears to be manifesting. The immediate support level is at $1,592; a break below this could result in 4.80 million ETH entering loss territory, possibly leading to further downside.