Ethereum Faces Whale Exodus Amid 2025 Challenges

2025 hasn’t kicked off well for Ethereum (ETH), the second-largest cryptocurrency by market cap. ETH continues to trade below its yearly open, while recent on-chain movements suggest that crypto whales are losing confidence in its potential for outsized returns.

Whales Show Signs of Fatigue

In contrast to other major cryptocurrencies like Bitcoin (BTC), Solana (SOL), and SUI, which hit fresh all-time highs (ATHs) in 2024, Ethereum has failed to revisit its November 2021 ATH of $4,878. The asset struggled to breach the critical $4,000 resistance level throughout 2024 and now trades in the low $3,000 range—approximately 35% below its peak.

Recent on-chain data indicates that ETH’s underperformance is beginning to shake confidence among its largest holders. Crypto tracking account Lookonchain recently revealed that a whale sold 10,070 ETH for 33 million DAI, realizing a $1 million loss at a market price of $3,280.

This whale had previously withdrawn 24,029 ETH worth over $81 million from Binance in December 2024, underscoring their market experience. Despite this sale, the whale retains 13,959 ETH, valued at $45.48 million, but the move raises questions about faith in ETH’s future price performance.

Adding to the uncertainty, the Ethereum Foundation continues its controversial practice of selling ETH near market tops. In 2024, the foundation offloaded 4,466 ETH for $12.61 million, prompting criticism over its timing and strategic intent.

Can Ethereum Rebound in 2025?

Despite 2024’s lackluster performance, there are signs that Ethereum might regain momentum in 2025, driven by both technical and institutional factors.

Strengthening Fundamentals

The recent approval by the U.S. Securities and Exchange Commission (SEC) of the first hybrid BTC and ETH exchange-traded funds signals growing mainstream acceptance of Ethereum. This development could boost investor confidence and increase ETH’s institutional adoption.

Technical Setup Shows Promise

On the technical front, Ethereum’s 3-day chart displays an inverse head-and-shoulders pattern—often a bullish signal. If confirmed, this pattern could enable ETH to finally break through the $4,000 resistance level, unlocking further upside potential.

Historical trends also favor Ethereum. Data suggests that ETH typically outperforms other digital assets in January following a U.S. election year, adding weight to the argument for a price recovery.

Optimism Tempered by Caution

At the time of writing, Ethereum trades at $3,210, up 6% in the past 24 hours. While the asset’s fundamentals and technical indicators hint at a brighter future, whale sell-offs and the Ethereum Foundation’s sales strategy continue to cloud market sentiment.

For Ethereum to regain investor trust and climb back to its ATH, it will need to sustain its current momentum, capitalize on growing institutional interest, and overcome critical resistance levels.