Ethereum whale dormant for 2 years, resurrected! Bought the dip for 8.74 million and acquired 4,020 ETH

Whale Dormancy Ends: Resurrected After Two Years, Bought 4,020 ETH at $2,174 Seven Hours Ago, Valued at $8.74 Million. Currently Holding 5,122 ETH, Cost Basis at $2,269, Nearing Current Price. Vitalik Transferred 705 ETH Worth $1.16 Million, Following Routine to Convert Stablecoins and Donate to Kanro Charity. Ethereum Trading at $2,274, RSI Showing Oversold Weakening.

Dormant Whale Precisely Exits at $2,174

(Source: Arkham)

According to on-chain analyst Ai Yi’s monitoring, addresses 0xF78…04d25 and 0x5F4…17f86 are suspected to belong to the same whale. Their transaction patterns, sources of funds, and timing are highly similar, indicating a single large holder operating behind the scenes. Notably, the whale’s last purchase of Ethereum was in February 2024 at a cost of about $2,631.88, with no activity for nearly two years since.

However, seven hours ago, this dormant giant suddenly woke up, buying 4,020.61 ETH on-chain at an average price of $2,174, totaling approximately $8.74 million. The timing and scale of this transaction are highly revealing. From a price perspective, $2,174 is about 17% lower than the whale’s previous purchase at $2,631.88, indicating accumulation at a more favorable price level. From a timing perspective, choosing this moment after two years of dormancy suggests the whale believes current prices are attractive.

Currently, the whale holds a total of 5,122 ETH, with an average cost basis of $2,269, nearly equal to the current price of $2,274. This cost structure is critical, showing the whale is not chasing high prices but patiently accumulating near breakeven or slightly in profit. For large funds, this near-cost position is ideal—avoiding deep losses while being poised to profit if prices rebound.

Three Key Details of the Whale’s Purchase

Timing: Exited after 2 years of dormancy during market panic, a contrarian move

Cost Advantage: Bought at $2,174, 17% below previous cost, lowering average cost to $2,269

Position Strategy: Distributed across two addresses to reduce single-point risk and market attention

Such large-scale buying is rarely impulsive; it’s usually based on thorough research and clear judgment. The whale may believe Ethereum is severely undervalued at current levels or that the market is near bottom. Regardless of motivation, a major holder re-entering at this time is a strong signal, worth market participants’ deep consideration.

Historical Reference Value of Whale Behavior

In crypto markets, whale actions often serve as leading indicators. Unlike retail investors, whales typically possess deeper market insights, more professional analysis, and a longer-term perspective. Their buy decisions are often based on fundamental and technical research rather than emotional chasing or panic selling. When whales accumulate during price dips, it usually signals they see the current price as undervalued with significant upside potential.

Historical data supports this logic. In past Ethereum bottom zones, similar whale accumulation patterns appeared. During March 2020 pandemic panic, ETH dropped near $90, with on-chain data showing many whale addresses aggressively accumulating below $100, followed by a two-year rally to $4,800. After the Luna collapse in June 2022, ETH fell to $880, with whales again concentrating buys, leading to a rebound above $2,000.

The current whale’s purchase at $2,174 suggests a bet that Ethereum is near or at the bottom. Technically, ETH has fallen over 53% from its 2025 high, a decline often marking late bear markets or bottoms. If this judgment is correct, ETH could see a significant rebound in the coming months, once again proving the whale’s market intuition.

However, following whales also carries risks. Despite their large capital, their judgments are not infallible. In November 2021, ETH hit $4,800 with whales heavily buying, only to crash over 80% afterward. Moreover, whales’ capital and risk tolerance far exceed retail investors—they can endure long periods of paper losses, while retail traders might be forced to cut losses due to leverage or psychological pressure. Rationally, one should view whale actions as reference points rather than absolute signals.

Vitalik Transfers 705 ETH to Continue Charitable Giving

In the past 24 hours, Lookonchain data shows Vitalik Buterin transferred a total of 705 ETH, including a transfer of about $1.16 million worth of 493 ETH, and previously exchanged 211.84 ETH. Unsurprisingly, the term “sell” triggered panic, with some market participants interpreting it as a sign of Vitalik losing confidence in Ethereum.

However, this does not indicate a loss of faith in ETH. Instead, it follows Buterin’s well-known pattern. He often converts ETH into stablecoins like USDC and donates to Kanro, a biotech charity focused on pandemic prevention. Buterin is not cashing out his crypto wealth for personal gain but actively using these funds to support real-world research and public health initiatives.

This aligns with Buterin’s overall strategy. He has explicitly stated a desire to reduce direct expenses of the Ethereum Foundation and shift toward personal funding of impactful projects. These include biotech research, decentralized governance, hardware security, and open-source tools. Earlier this year, he allocated 16,384 ETH (about $45 million) to support open-source security and privacy projects.

This explains why these transfers are planned, systematic, and not impulsive or emotional reactions. Vitalik’s ETH movements should not be seen as sell signals but as part of his wealth management and philanthropy strategy. Interpreting every wallet activity as a market signal is a misreading of his motives and can cause unnecessary market panic.

While social media continues to scrutinize Buterin’s wallet activity, large institutions are taking the opposite approach, increasing their ETH holdings. A typical example is Tom Lee’s BitMine Immersion Technologies, which recently added 41,788 ETH to its treasury despite unrealized losses of around $6 billion. Such large-scale accumulation demonstrates institutional confidence in Ethereum’s long-term value.

Ethereum Technicals Show Weakening Selling Pressure

According to CoinMarketCap data, ETH is trading near $2,274, with a slight decline in the past 24 hours. The MACD histogram indicates it remains below the signal line, confirming a bearish trend. However, the RSI is in oversold territory, suggesting selling momentum is weakening.

This combination often appears near market bottoms. When MACD remains bearish but RSI enters oversold zones, it signals exhaustion of downward momentum. While it doesn’t guarantee an immediate rebound, it indicates downside pressure may be nearing its limit. Historically, ETH’s RSI entering below 30 has often been followed by technical rebounds within weeks.

The whale’s purchase at $2,174 coincides with this technical turning point. It may be based on RSI oversold signals and historical bottom zones, believing risk-reward is now attractive. If ETH rebounds to $2,500 or $3,000 in the coming weeks, this investment could yield significant gains. Conversely, if the market continues downward to $2,000 or even $1,800, the whale might face short-term paper losses, testing its patience.

All these factors suggest that whether it’s the dormant whale’s re-entry or Vitalik’s routine charitable transfers, they should not be overinterpreted as definitive market directions. Rational investors should consider these events as signals of market sentiment and capital flows, integrating their own analysis and risk tolerance for decision-making.