Dormant Ethereum Wallet Awakens: $145 Million Moved Amid Market Speculation

Ethereum Whale Activity Sparks Market Interest

Ethereum has captured attention following a significant transaction by a long-dormant whale, moving $145 million in ETH, while analysts debate the implications on its valuation amid current market pressures.

On-chain data has revealed that a previously inactive Ethereum wallet has moved a substantial amount of ETH, coinciding with a period of price pressure for the cryptocurrency. Despite this, experts maintain that Ethereum's fundamentals suggest a promising long-term outlook.

Inactive Wallet Transfers 50,000 ETH

Recent blockchain activity shows a dormant Ethereum whale reactivating after years of inactivity. The wallet executed two transactions on Sunday, transferring 50,000 ETH, valued at approximately $145 million, to a Gemini wallet, as per analytics from EmberCN.

Originally, the wallet "0xb5…Fb168D6" had withdrawn about 135,000 ETH from Bitfinex in 2017, valued at $12.17 million when ETH was priced at $90. The wallet remained inactive until the recent transfers.

After these significant transfers, the wallet's balance still holds 85,283 ETH, equating to $244 million. Transfers of this magnitude to exchanges often lead to concerns about potential selling activities, although such intentions have not been confirmed.

Currently, Ethereum is trading just below $2,900, having struggled to surpass the $2,950 resistance level. Analysts suggest that breaking above $3,000 could see the token reaching $3,065, with potential to climb further to $3,120 or even $3,150.

Macro Trends Favor Ethereum's Long-Term Outlook

Amidst these developments, analysts are considering Ethereum's potential as a long-term value store. Lorenzo Valente shared insights on X, highlighting Ethereum's macro position.

He emphasized the importance of quantum-resistant upgrades for Ethereum's future. As markets often anticipate long-term risks, strategic planning becomes crucial.

Valente also addressed software risks in an AI-driven era, noting that rapid bug discoveries could challenge claims of immutable systems. Ethereum's adaptability to upgrades may offer resilience in such a landscape.

Furthermore, Valente praised Ethereum's stable monetary policy, contrasting it with the approximately 5% annual inflation seen in networks like Solana. Ethereum's net inflation rates, around 0.8% over 30 days and 0.21% since the Merge, remain low compared to other networks and gold's long-term supply growth.

Additionally, Ethereum's non-reliance on AI data centers for resources helps it avoid potential security budget constraints. This separation might gain significance as AI investments grow.

Valente also noted the potential benefits tied to stablecoins, tokenized assets, and automated payments. Increased usage could lead to higher fee burns, possibly driving ETH toward deflation.