Ethereum extended its decline on Monday, Jan. 26, after on-chain data showed a dormant whale moving $145 million worth of ETH. The whale’s activities have increased supply-side uncertainty at a time when Ethereum trades below key levels. Ether fell by approximately 1.7% to $2,885, while derivative activity surged amid declining trader confidence.
Dormant Ethereum Whale Returns to Life
Blockchain analytics firm EmberCN reported that an Ethereum wallet, which had been inactive since 2017. It made a pair of transactions involving 50,000 ETH (approximately $145 million). The funds were sent to a Gemini-associated wallet. This was the first transaction from the wallet in almost 9 years. According to EmberCN, using data from Arkham Intelligence, the wallet currently contains approximately 85,283 ETH after the transactions.
In 2017, the wallet moved approximately 135,000 ETH from Bitfinex when Ether was trading at approximately $90. It is unclear what motivated the whale to make this transfer. But the timing has brought attention to it as ETH is trading at key technical areas after several weeks of declining value.
Also Read | Ethereum Faces Selling Pressure as Resistance Holds Near $3,310 Level
Traders Are De-Risking Positions
CoinGlass reports that futures volume for Ethereum rose by more than 260% over the last day, while open interest declined by approximately 3%. These types of metrics generally indicate the de-risking or liquidation of existing positions. This differs from aggressive accumulation in anticipation of a price rebound.
Source: Coinglass
Momentum Remains Negative
Over the 4-hour timeframe, ETH continues to be sold as its price is trending lower than the 50 EMA and the 200 EMA. Thus, the trend is still negative based on short-term analysis. ETH is still below the session VWAP, indicating that the price remains below short-term fair value.
EMAs. Source: TradingView
In addition, the momentum indicators continue to support this view. The RSI is holding in the low 40’s and has not crossed back above the 50 level. The MACD is below the zero line, showing that bearish momentum has not been reversed.
RSI and MACD. Source: TradingView
Structure Continues To Pose Downside Risk
The trading action of ETH continues to remain within a bear flag structure, according to a chart shared by Trader Tardigrade. For the bear flag structure to continue to be valid, ETH’s price needs to remain below the $2,900-$2,906 resistance zone.
If ETH cannot make a sustainable move higher than this resistance zone, then the bear-flag structure would remain intact. Hence, downside risk will still exist for this coin until the bear flag has been broken.
As long as the current support level remains weakened, the potential bear flag shows a drop towards the $1,600-$1,700 price range.
Why This Is Important
The combination of large-scale trader activity, derivatives de-risking, and resistance at a higher timeframe increases the risk of volatility if ETH is unable to regain $2,900.
Also Read | Ethereum (ETH) Diverges from Russell 2000, Eyes $3,050 Upside in 2026
This article is for informational purposes only and does not constitute investment advice.
