Long-Term Holders Cash Out at Key Price Points
On-chain data is showing something interesting about Ethereum’s price movements. According to analyst Murphy, there’s a pattern emerging with what he calls ‘legacy’ Ethereum whales. These are investors who bought ETH years ago, back when prices were below $400.
The average cost basis for ETH held between 5 to 7 years sits around $378, Murphy notes. That’s a pretty low entry point, especially considering where prices have been recently. What’s caught attention is how these long-term holders behave when ETH crosses certain thresholds.
Whenever Ethereum’s price pushed past $4,000 during the 2024-2025 period, these veteran whales started taking profits. It’s not just small amounts either. The numbers are substantial.
Significant Profit-Taking Events
In March 2024, investors holding ETH for more than 5 years realized about $600 million in profits in just one day. That’s a lot of selling pressure hitting the market at once.
Then in June 2024, the figure jumped to $1 billion. A billion dollars worth of ETH changing hands from long-term holders in a single day. That’s the kind of movement that can really impact price action.
The trend continued into 2025. In September, over $500 million worth of ETH was sold from wallets that had been holding for more than 7 years. October saw similar activity from even older wallets—those holding for over 10 years.
Murphy points out something consistent about these sales: they almost always follow temporary peaks in ETH’s price. It’s like these experienced investors have a sense for when the market might be getting ahead of itself.
The Bigger Picture of Whale Holdings
Despite all this selling, veteran ETH whales still control a significant portion of the supply. They’re sitting on approximately 20.1 million ETH, according to the data.
That’s interesting because the supply held for over 5 years has actually been decreasing. Starting in May 2024, ETH treasury companies began making aggressive purchases. You’d think that might offset the whale selling, but apparently not completely.
I think what we’re seeing here is natural market behavior. People who bought low are taking some profits when prices get high. It makes sense, really. If you bought something at $378 and it’s trading above $4,000, you’re looking at more than 10x returns. Taking some money off the table seems reasonable.
But it does create interesting dynamics for the market. When these large holders sell, it can create resistance at certain price levels. The $4,000 mark seems to be one of those psychological barriers where profit-taking kicks in.
What’s unclear is whether this pattern will continue. Markets change, investor behavior evolves. Maybe next time ETH approaches $4,000, these whales will hold differently. Or maybe new patterns will emerge.
For now, the data shows a clear correlation between price levels and whale selling activity. It’s one of those on-chain signals that traders and analysts watch closely. Not as a crystal ball, but as another piece of the puzzle in understanding market movements.
Remember, this is just data analysis, not financial advice. Markets are complex, and past patterns don’t guarantee future results. But understanding how different market participants behave can provide useful context for anyone following cryptocurrency markets.
