- Dormant ETH whale has reemerged, transferring 7,000 ETH to Kraken as it plunged to $1,760.
- Given the turbulence in risk assets, ETH traders should closely monitor exchange inflows.
Ethereum [ETH] has plunged below the $2,000 mark, erasing $46 billion in market value within a week. This drop brings ETH back to the $1,900 range for the first time in two years.
With a 10.64% weekly decline, ETH stands as the weakest performer among high-caps. But with RSI in oversold territory and trading volume surging 47%, could this be the perfect “dip-buying” opportunity?
Dormant ETH whale awakens
Ethereum’s market just saw a significant on-chain event. An ETH whale, dormant since the initial coin offering (ICO), has resurfaced, transferring 7,000 ETH ($13.8M) to Kraken.
This move coincided with ETH plummeting to $1,760 – its lowest level since October 2023.
Despite ETH rebounding to $1,900, the whale still holds 30,070 ETH ($50M). If more selling follows, ETH could face deeper corrections, which looks increasingly likely in the near-term.
Why? While declining exchange reserves confirm accumulation, the broader market downturn and rising liquidations could put ETH’s recovery at risk.
Over $110 million in ETH long positions were liquidated in the past 24 hours and ETH funding rates turning negative on three out of six top exchanges suggest short-sellers are tightening their grip.
Source: CryptoQuant
Adding to the bearish pressure, 180-day dormant circulation spiked as ETH broke below $2,100, indicating a surge in long-term holder sell-offs.
In a risk-off environment, this aligns with a distribution phase, further weighing 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, meaning the average holder is now at an unrealized loss.
Currently trading at $1,917, ETH sits below the realized price of $2,058, pushing its MVRV ratio to 0.93, reflecting a 7% network-wide unrealized loss.
Source: Glassnode
Historically, dips below realized price have signaled capitulation zones. With dormant ETH whales selling off, this trend seems to be in place.
Immediate support rests at $1,592 – a break below this level could push 4.80 million ETH into loss. If breached, it could open the door for further downside.
