For all of the recognizable dynamic qualities that are associated with Ethereum’s price, during this current market cycle, it has been anything but dynamic. Most notably, Ethereum has made three attempts to break out of a key trading range, with three subsequent rejections that have left many traders who are inclined to lean bullish feeling somewhat confused. In the past, Ethereum has been quick to breach key resistance levels and then rally strongly upward. But in this present cycle, it has not behaved that way at all. Historically, $ETH 's rallies past previous highs have been explosive. Yet this cycle has already seen three failed attempts. Will the next move break the pattern, or have market conditions fundamentally changed? pic.twitter.com/jdKU2Rt3Lp — IntoTheBlock (@intotheblock) February 3, 2025 It has been staying more within a trading range, and the attempts to break out of that trading range haven’t gone incredibly smoothly or haven’t looked particularly bullish when viewed through the lens of those past times when breaches of those types of levels have turned out to be very bullish moments for Ethereum holders. On-chain activity is sending mixed signals these days. On one side, the 1inch Investment Fund has been aggressively accumulating Ethereum and wrapped Bitcoin (WBTC), spending more than $25.44 million in just 20 hours. On the other, two long-dormant Ethereum whale wallets suddenly came to life after six years, transferring 135,548 ETH (worth $399 million) to Bitfinex just before a market crash. Meanwhile, Ethereum’s spot ETF is suffering net outflows of $45.51 million. Why is this happening? And what does it mean for the short-term future of ETH? Two dormant Ethereum whale wallets just woke up after 6 years and deposited 135,548 $ETH ($399M) to #Bitfinex 8 hours—just before the market crash! These wallets originally withdrew $ETH at just $153.65 (then $20.8M) on Jan 5, 2019. If they truly bought then and sold now,… pic.twitter.com/j2RqIZFw0a — Spot On Chain (@spotonchain) February 3, 2025 1inch Investment Fund Bets Big on ETH A bullish signal is coming from the 1inch Investment Fund. It is making strategic purchases while the market is down. In just the last hour, it has bought 7,289 ETH—$10.44 million worth—and 52.072 WBTC—$5 million worth. And when you extend the timeframe to 20 hours, it has invested a total of $25.44 million; its average purchase price for the 7,289 ETH is $2,804; and for the WBTC, $96,021. The 1inch team has an excellent standing for executing trades that bring in a lot of profits. 1inch’s Investment Fund bought 7,289 $ETH ($10.44M) and 52.072 $WBTC ($5M) in the past hour! Over the past 20 hours, the fund has spent a total of $25.44M to buy: • 7,289 $ETH at an average price of $2,804; • 52.07 $WBTC at an average price of $96,021. The 1inch team is a… pic.twitter.com/IhyH76reJA — Spot On Chain (@spotonchain) February 3, 2025 They have made millions trading Ethereum, Uniswap, and their own token, 1INCH. Despite the structure of the current market, they are buying a large quantity of not just 1INCH, but also Ethereum and Uniswap. It is now more uncertain than before what their trades mean for Ethereum and the future of decentralized exchanges, but it is probable that these trades are very profitable for the team and very beneficial for the market. Dormant Whales Return, Raising Sell-Off Fears Although 1inch is counting on Ethereum’s continued success, another big event on the blockchain has some worried that it might lead to lower prices. Two whale wallets that had been inactive for six years suddenly moved a massive 135,548 ETH to Bitfinex just eight hours before the recent price crash. These wallets initially converted their ETH to fiat currency on January 5, 2019, when the asset was priced at just $153.65 per token. At the time, their holdings were worth around $20.8 million. If they were to sell now, they would harvest a colossal $378.3 million profit on the trade—an absolutely monstrous 1,817% gain. The transfers’ timing is of the essence. When centralized exchanges receive big, unmistakable deposits, it’s often taken as a sign that a holder—or in this case, a group of holders—is about to hit the sell button. If the ETF’s mightiest proponents choose to use these shiny new tokens to make some decentralized finance (DeFi) moves, it’s probably not going to result in a market downturn. Conversely, if they choose to sell these tokens for currency on an exchange, that might well lead to the kind of decentralized finance hyperreality that results in a market downturn. Ethereum Spot ETF Outflows Add to Uncertainty Contributing to the negative sentiment, Ethereum spot ETFs experienced a net outflow of $45.51 million last week. In contrast, while Bitcoin’s spot ETFs have enjoyed very strong inflows, investment vehicles tracking Ethereum have had a hard time generating comparable interest. Overall, this situation is starting to crystallize a narrative as a sign of flagging institutional demand for ETH. Last week (January 27 to January 31, EST), Bitcoin spot ETF had a net inflow of $560 million, Blackrock Bitcoin ETF IBIT sees weekly net inflows of $751 million and Ethereum spot ETF had a net outflow of $45.51 million. https://t.co/Tvs2oCSxTg — Wu Blockchain (@WuBlockchain) February 3, 2025 What’s Next for Ethereum? At a crossroads, Ethereum’s price action reflects a market sentiment shaped by conflicting signals. One signal—the accumulation of ETH by smart traders like 1inch—hints at a price path that leads us up and away from the SEC. This is precisely the direction one would want ETH to go if one were both a holder and a supporter of Ethereum. But there’s another signal, one that suggests just the opposite path for ETH: the price has been relatively flat, and whale activity has been suspiciously dormant. Ethereum might see a strong recovery if it can stay above important support levels and bring in fresh institutional buying. But if pressure from sellers picks up, particularly from long-term holders who are cashing in after holding for what they expected to be the long term, we might see another drop. At present, investors and traders are fixated on whether Ethereum will finally break free from its pattern of unsuccessful rallies or if the ongoing cycle will continue to defy historical trends. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: volodymyrshtun89/ 123RF // Image Effects by Colorcinch
