The first group of Ethereum investors are likely to have closed their entire ETH positions, following on-chain data indicating that coins have been transferred to centralized exchanges, with this sell-off expected to generate approximately 274 million USD in profits
This event occurred at a time when ETH was also facing selling pressure from U.S. institutional investors. Nevertheless, some analysts remain optimistic about the future of this second-largest cryptocurrency.
Ethereum's OG whale made a 344% profit
Blockchain analytics firm Lookonchain reported that this investor has accumulated 154,076 ETH coins at an average price of 517 USD since last week. The wallet in question began transferring ETH to Bitstamp, a major cryptocurrency exchange.
Over the past two days, he deposited another 40,251 ETH coins (124 million USD) into Bitstamp and still holds 26,000 ETH coins (80.15 million USD), as revealed by Lookonchain on January 10.
Just a few hours ago, this investor transferred the final 26,000 ETH coins into the exchange center, and according to Lookonchain data, the investor has made a total profit of approximately 274 million USD, representing around a 344% gain.
This ETH transfer aligns with the pattern of gradual, continuous deposits of ETH observed previously. Data from Arkham indicates that this investor first transferred 137 ETH coins to Bitstamp around eight months ago.
Previously, there was a transfer of 17,000 ETH coins three months ago, and another of 18,000 coins about one month ago, indicating a long-term staggered selling strategy rather than a one-time full sell-off.
Meanwhile, the timing of this whale's sell-off coincides with broader institutional investor caution. Thus, the ETH Coinbase Premium index remains significantly negative. This indicator compares the price difference of ETH between Coinbase—often used as a gauge of U.S. investor confidence—and Binance, which reflects the behavior of global retail investors.
A negative reading indicates that ETH is trading below its typical level on Coinbase compared to foreign platforms, signaling strong selling pressure from U.S. institutional investors. This trend continues into 2026, pointing to a strategic shift toward risk reduction among professional investors.
Despite ongoing selling pressure, some analysts remain positive about ETH, choosing to overlook short-term volatility.
Quinten François suggested that Ethereum appears to be 'significantly undervalued' when considering its economic activity relative to its current price.
Similarly, Milk Road added that this disconnect is evident when reviewing the data, as economic activity on Ethereum continues to grow even during periods when ETH's price has not yet caught up with that expansion.
Analysis also indicates that large investors continue to prioritize Ethereum's availability, liquidity, transaction reliability, and regulatory clarity.
As onchain activity increases, transaction volume and fees rise accordingly, adding economic weight to Ethereum's main layer. As long as high usage persists, ETH rarely remains stagnant for long. While adoption continues to grow, we will keep moving toward higher levels. As Milk Road put it, looking at the bigger picture.
From a technical perspective, analysts are identifying key patterns that may support a price recovery.
The tension between short-term selling pressure and market confidence is making the Ethereum market complex at present. The exit of early adopters and negative Coinbase Premium signals are all warning signs to watch out for, while growing economic activity continues to strengthen the ecosystem. However, whether ETH's price will align with these fundamentals remains to be seen.