Dormant Ethereum Whales Awake to Take $378.3M Profit after 6 Years Inactivity
Dormant Ethereum wallets sold $399 million worth of ETH before a market crash, realizing massive profits and contributing to the downturn.
Two Ethereum wallets suddenly sent a large amount of ETH to the Bitfinex exchange just eight hours before the crypto market crashed after six years of dormancy, realizing a $378.3 million profit.
The transfer included 135,548 ETH, worth roughly $399 million at the time. The wallets’ history makes this event remarkable. Shortly after the transaction, the cryptocurrency market then plummeted, with Bitcoin and Ethereum values falling sharply.
Ethereum Whales Initial Moves
Historically, these same wallets initially withdrew their ETH on January 5th, 2019, at $153.65 per ETH. This initial withdrawal totaled $20.8 million.
Notably, these wallets sold their entire holdings after depositing the ETH into Bitfinex, making a staggering profit. A sale at the pre-crash price yielded approximately $378.3 million, an astounding 1,817% return.
Furthermore, this wasn’t an isolated incident during the market crash. IntoTheBlock shows a 72.35% increase in large Ether transactions exceeding $100,000 in the 24 hours before the crash.
Moreover, exchanges saw a net inflow of over $320 million worth of Ether, nearly triple the previous day’s volume. This massive increase in deposits strongly suggests widespread selling contributed to the market downturn.
Whale “7 Siblings” Bold Bet
Lookonchain reports that the whale entity “7 Siblings” purchased 50,429 ETH, worth $126 million, in a single day. One transaction alone involved 5,382 ETH, valued at $14.5 million. These massive acquisitions show growing institutional investor confidence despite recent market volatility.
Previously, on August 6, 2024, “7 Siblings” made a similar move after a market crash, spending $111.72 million to acquire 45,047 ETH at an average price of $2,480. This “buying the dip” strategy anticipates future price increases. These strategic purchases often signal market bottoms and potential bullish sentiment.
AliCharts indicates that Ethereum must stay above $2,700 to maintain its bullish structure. If it does, a rally toward $7,000 remains possible. The Binance daily chart shows Ethereum trading at $2,836.14, an 8.99% decline.
Historical price movements show Ethereum forming an inverse head-and-shoulders pattern. The head sits near $2,109.18, and the shoulders around $2,721.38. A previous breakout from this pattern fueled a rally, pushing Ethereum to a peak of $4,109.99 before encountering resistance.
Notably, Ethereum’s sustained presence above key levels suggests future resistance at $4,927.73 (1.272), $5,417.36 (1.414), and $6,207.15 (1.618), according to Fibonacci extensions. The highest projection reaches $6,943.31 at the 1.786 Fibonacci level.