Ethereum whales return and sell off idle ETH worth over $6 million

Two large Ethereum wallets that had been inactive for years have now resumed activity and sold a significant amount of ETH. According to data shared by Lookonchain, these reactivated accounts belong to early Ethereum holders, including an investor from the 2014 ICO. The wallet associated with the Ethereum ICO transferred its entire balance of 2,000 ETH to Binance. This wallet had not performed any operations for nearly a decade. Reportedly, this 'whale' sold off all of it for approximately $5.13 million within a few days. This marks a rare return of one of Ethereum's early participants and highlights the resurgence of long-term holders.

Two years later, another whale sold 500 ETH

Another wallet had been dormant for about two years and then resumed activity, initially sending a small test transaction of 1 ETH. It subsequently transferred out 500 ETH for sale, totaling approximately $1.29 million. Data also shows that in 2023, the same 'whale' sold 2,286 ETH and 1,500 ETH, with the previous sales valued at $4.32 million and $2.83 million, respectively.

While these whales liquidate their positions, Ethereum exchange-traded funds (ETFs) also suffered heavy losses. On June 16, the single-day outflow for the ETH spot ETF reached as high as $10 million. The Fidelity Ethereum Fund ETF had the largest outflow, totaling 3,496 ETH, valued at over $9 million.

Broader impact on the Ethereum market

Invesco Galaxy had a smaller outflow of 172 ETH, while the Grayscale Ethereum Trust and its mini version lost 78 ETH and 2 ETH, respectively. The remaining ETFs recorded no inflows. While the daily net flow was negative, the weekly net flow remained positive at 191,057 ETH.

These events coincided with volatility in Ethereum's price. On Sunday, ETH surged 6.65%, breaking through $2,680, before falling over 5% on Monday. As of the latest data, Ethereum's trading price is approximately $2,523.