Ethereum (ETH) Price Analysis: 1inch Investment Fund Bets Big on ETH, Dormant Whales Return, Raising Sell-Off Fears

At a crossroads, Ethereum's price action reflects a market sentiment shaped by conflicting signals.

Ethereum price has been anything but dynamic during this current market cycle, despite all of the recognizable dynamic qualities that are associated with it.

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