2025 hasn’t started on a strong note for Ethereum (ETH), as the second-largest digital asset by market capitalization continues to trade during its annual opener. Recent moves in the chain also suggest that crypto whales may be losing faith in ETH’s potential to deliver outsized returns.
Are whales losing faith in Ethereum?
While cryptocurrencies such as Bitcoin (BTC), SUI and Solana (SOL) experienced stellar performances in 2024 – delivering exceptional returns to investors and hitting new all-time highs (ATH) – Ethereum’s journey was comparatively underwhelming.
Unlike its peers, which set new ATHs in 2024, Ethereum’s ATH of $4,878 has remained untouched since November 2021. This highlights ETH’s relatively weaker price performance last year.
Additionally, Ethereum repeatedly failed to break the stubborn $4,000 resistance level throughout 2024. Currently, ETH is trading in the low $3,000 range, and ETH is still about 35% below its ATH.
Chain analysis now reveals that Ethereum’s underwhelming performance is beginning to shake the confidence of its largest holders. According to an X post of 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 transaction was completed at a market price of $3,280, resulting in a loss of $1 million for the election.
Interestingly, this particular whale appears to be an experienced market participant. In December 2024, the same entity withdrew 24,029 ETH – worth over $81 million at the time – from Binance. Despite the recent selloff, the whales still hold 13,959 ETH, valued at $45.48 million at current prices.
Concerns also remain about the return of the Ethereum Foundation practice to sell ETH near market highs. A recent one post by Spot On Chain revealed that the foundation has already sold some ETH in 2025. In 2024, the organization unloaded 4,466 ETH for $12.61 million, raising questions about its timing and strategy.
Can ETH Correct in 2025?
Although 2024 was weak for Ethereum in terms of price development, 2025 is promising, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the US Securities and Exchange Commission (SEC) recently approved the first hybrid BTC and ETH exchange-traded funds, signaling increased acceptance from mainstream channels.
From a technical perspective, things also seem to be improving for Ethereum. Latest analysis highlights the formation of an inverted 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.
In addition, historical data indicates that Ethereum tends to outperform other digital assets in January following a US election year, adding to optimism about its price trajectory. At press time, ETH is trading at $3,210, up 6% over the past 24 hours.
