Ethereum Faces Whale War as $400M Sell-off Sparks Volatility  

• Ethereum dipped under $2,400 due to massive whale sell-offs, triggering heightened volatility.  
• High-profile wallets, including the Seven Siblings, purchased over 50,000 ETH to stabilize prices.  
• DeFi platforms like Aave experienced significant liquidations as Ethereum prices fluctuated dramatically.

Ethereum (ETH) has found itself amid intense market volatility after a single seller liquidated nearly $400 million worth of the cryptocurrency on Bitfinex. This triggered significant price movements, sending ETH’s value under $2,400 before some buyers swooped in to take advantage of the dip.

Whale Activity Sparks Sudden Price Drop

ETH has seen a noticeable downturn in the past few weeks, recently slipping below $2,500. A series of coordinated whale sell-offs, notably from dormant wallets, exacerbated the situation. One wallet, which had been inactive since 2019, liquidated around $149 million, while another moved over $201 million in ETH. These large sell orders contributed to a price drop, with ETH briefly touching $2,400.

However, the selling pressure didn’t last long, as some high-profile wallets seized the opportunity to buy ETH near its lows. A whale group known as the “Seven Siblings” purchased over 45,000 ETH around the $2,480 mark. This buying activity helped to partially offset the earlier sell-off, offering a glimmer of hope for a market rebound.

Additionally, 1inch Investments entered the market, purchasing another 7,289 ETH, alongside over 52 WBTC. The strategic buys by these whales have helped stabilize Ethereum’s price, showing that large players are still confident in its long-term value.

The wave of price changes in Ethereum sent massive impacts across the entire cryptocurrency market. The drop of Ethereum below $2,500 caused direct impacts on decentralized finance (DeFi) sectors since DeFi relies heavily on Ethereum-based lending and borrowing platforms. The descent of ETH value resulted in extensive liquidations totaling more than $200 million at Aave which operates as the biggest decentralized lending platform. Despite the dependency of the DeFi market on Ethereum, the cryptocurrency plays a vital role and numerous loans continue to utilize Wrapped ETH (WETH) as security.

The price decrease of Ethereum resulted in reduced market dominance which reached 9.61 percent. ETH faces ongoing challenges in market dominance against Bitcoin because its price has failed to surpass its downward movement.

Ethereum’s Market Outlook Remains Uncertain

Recent whale purchases along with efforts to stabilize prices do not guarantee future success for Ethereum. The price dip below $2,500 has caused major difficulties for long-term stakes because they set their positions at prices higher than $2,500. Whether the whale activity will be enough to spark a broader recovery remains uncertain, with many eyes on Ethereum’s performance as the market heads toward February.