Ancient Whale Sells 14,000 ETH, Price Tests Key Support

An early Ethereum (ETH) investor has reportedly sold a major portion of their holdings through over-the-counter (OTC) trading desk Wintermute.

According to crypto analyst Ai, the whale offloaded 14,000 ETH worth approximately $31.92 million in a move that could signal growing selling pressure from long-term holders.

On-chain analysis reveals the wallet’s ETH can be traced back to address 0x035…8dFC7, which accumulated 35,932 ETH between September 2016 and December 2018 at an average purchase price of $203.22.

This early entry point allowed the investor to realize an estimated profit of $29.07 million from the recent sale.

ETH Price Faces Critical Support Test

The whale’s large sale comes at an important moment for Ethereum’s price action, with Glassnode data highlighting $1,890 as a crucial support level that could decide ETH’s mid-term move.

According to Glassnode’s Cost Basis Distribution analysis, this price point represents the largest accumulation zone below current spot prices, with approximately 1.82 million ETH purchased in this range during August 2023.

This concentration of “sticky” supply suggests buying interest could rise if prices approach this level.

These August 2023 buyers have shown strong conviction, not only holding through recent volatility but some even increasing their positions during the November 2024 rally while avoiding major distribution at range highs.

The data reveals limited support between current prices and the critical $1,890 zone.

The nearest notable accumulation level sits at $2,100, but with only about 500,000 ETH purchased at this price point, it represents much weaker support compared to the major zone below it.

This creates a potential scenario where a break below $2,100 could accelerate downside movement until reaching stronger buyer interest around $1,890.

Crypto analyst Milkybull has expressed concern about Ethereum’s relative underperformance during the current market cycle, emphasizing the importance of maintaining support levels to prevent a decline.

Long-term Holder Behavior Suggests Conflicting Market Signals

Glassnode’s six-month view of Ethereum’s Cost Basis Distribution reveals interesting patterns among investors who purchased ETH at much higher price points, particularly around $3,500.

Rather than capitulating during price declines, these investors have gradually lowered their cost basis while periodically increasing their position sizes.

This behavior suggests they are strategically absorbing available supply rather than exiting their positions at a loss.

This accumulation pattern contrasts with the ancient whale’s decision to sell, creating mixed signals about market sentiment among different investor cohorts.

BecauseBitcoin CEO offered a strongly bullish counternarrative to concerns about Ethereum’s price action, characterizing current sellers as “fuel for much higher” prices.

The CEO described Ethereum as being in a “multi-year range that is pending a breakout to the upside,” suggesting that the real move higher will begin once the monthly RSI (Relative Strength Index) breaches 70, a technical indicator that would signal strong momentum.

Multiple Market Cycles Create Distinct Investor Behaviors

The ancient whale’s decision to sell ETH acquired in 2016-2018 highlights how different investor decisions form varying strategies based on their entry points and the market cycles they’ve experienced.

For early adopters who purchased ETH below $300, even current prices represent a return of more than 7x on their initial investment, creating strong incentives to take profits despite potential future appreciation.

This early investor group stands in stark contrast to those who entered during later market cycles, particularly during the 2021 and late 2024 rallies.

On-chain data suggests these newer participants are either holding through drawdowns or strategically averaging down their cost basis, viewing price declines as opportunities rather than exit signals.