A major Ethereum holder executed a significant defensive financial maneuver, selling 41,800 ETH (worth approximately $150 million) to repay a loan on the Aave lending platform and avoid an automated liquidation event. The transaction, spotted by on-chain analyst ai_9684xtpa, is part of a larger trend for this wallet, which has sold over 58,000 ETH since late January.
Despite the large sale, the entity remains deeply invested in the Ethereum ecosystem. It continues to hold 38,465 ETH in staking contracts and maintains a $40.06 million USDC loan on Aave, indicating a strategy of active, layered portfolio management rather than a full exit. The move was a preemptive action to avoid forced liquidation by Aave's smart contracts, which would have sold the collateral at a potential discount if ETH's price fell further, eroding the position's health factor.
The event coincides with a broader downturn in Ethereum market sentiment. Following a confirmed head-and-shoulders technical breakdown on February 3, ETH price has slipped below key support levels. This bearish signal was compounded by on-chain data showing Ethereum co-founder Vitalik Buterin sold approximately 2,961 ETH (worth $6.6 million) over three days starting around the same time.
This high-profile selling appears to have influenced other investor cohorts. Data from Santiment and Glassnode shows that after initially buying the dip on February 2-3, Ethereum whales (excluding exchanges) have since reduced their holdings by roughly 140,000 ETH (over $290 million). Furthermore, long-term holders (wallets holding ETH for over 155 days) have also begun net selling for the first time in weeks, with a net outflow of around 10,681 ETH.
Analysts note that the whale's voluntary sell-off to manage risk is a sign of sophisticated treasury management and market maturity, potentially helping to stabilize markets by preventing cascading forced liquidations seen in past downturns. However, the confluence of technical breakdown, whale distribution, and selling by a key figure like Buterin has increased near-term downside risks. On-chain cost basis clusters and technical projections now point to the $1,800-$1,880 zone as a critical support level for Ethereum.
