Dormant Ethereum Whales Move $399M ETH Before Market Tanks – Coincidence?

Key Takeaways

• Dormant Ethereum whales moved $399M to Bitfinex just before the crash.
• Ethereum plunged nearly 20%, dipping below the $3,000 support level.
• Whale ‘7 Siblings’ bought over $126M worth of ETH amid the sell-off.

Two dormant Ethereum whale wallets reawakened after six years, making a massive deposit of 135,548 ETH (worth $399M) to Bitfinex just hours before the market took a sharp dive.

These wallets had originally withdrawn the Ethereum at just $153.65 per ETH back in January 2019, when their holdings were valued at $20.8M. If they indeed sold at current prices, they would be cashing in on a staggering $378.3M profit, marking a 1,817% return.

Ethereum, which was holding above the $3,000 level, suffered a sudden crash. In the last 24 hours, it fell nearly 20% and touched the $2,500 mark. This sharp decline marks one of its worst sell-offs in recent years.

The drop coincided with heightened market volatility after former U.S. President Donald Trump announced 25% tariffs on Canada, Mexico, and China, sending shockwaves through traditional financial markets. Given the increasing correlation between crypto and traditional markets, Ethereum and other digital assets experienced a cascading sell-off.

Whale ‘7 Siblings’ Accumulate Big Amid Bloodbath

Despite the severe downturn, whale activity intensified as opportunistic investors stepped in. Lookonchain reported that a whale entity known as “7 Siblings” took advantage of the dip, acquiring 45,047 ETH worth approximately $111.72M at an average price of $2,480. Another wallet linked to “7 Siblings” also scooped up 5,382 ETH worth $14.5M, bringing their total accumulation to 50,429 ETH valued at $126M.

This isn’t the first time “7 Siblings” has capitalized on a market downturn. The last recorded instance was August 6, 2024, when the whale group made a major ETH purchase following another significant market crash. Their aggressive accumulation suggests a strong belief in Ethereum’s long-term recovery despite short-term panic.

Experts Weigh In On Ethereum’s Largest Liquidation Event

The recent drop triggered a bout of forced sales, with $2.1 billion in assets being stripped in one 24-hour period alone. Felix Hartmann, a founder at Hartmann Capital, likened it to a near-term capitulation, speculating that outright panic selling could have ensued, but could not say with any assurance regarding long-term direction.

$2.1bn liquidated in 24 hours.

Good chance this is a near term capitulation. Don’t know about the long term trend, but for now, this was a lot of forced selling and priced may be dislocated.

— Felix Hartmann (@FelixOHartmann) February 3, 2025

Crypto expert Max continued that this was Ethereum’s biggest liquidation in over two years, likening it to the 2020 COVID bust in March. Max continued that such occurrences have a knack for controlling marketplace cycles, with only investors with iron wills enduring them. Most will sell out in terror, but Max believes that investors who weather out the fluctuations have a chance to reward in the long-term.

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