Ethereum drops 51% in 2025 amid whale sell-offs

Ethereum (CRYPTO:ETH) is facing significant challenges in 2025, with its value plummeting by 51.3% since the beginning of the year.

This decline is largely attributed to increased whale activity, as large ETH holders continue to offload substantial portions of their holdings, adding pressure to the cryptocurrency's price.

The ongoing sell-off has weakened investor confidence, with fewer addresses holding at least $1 million in ETH.

According to Glassnode data, these high-net-worth investor addresses have decreased sharply year-to-date, reflecting a notable decline in confidence among major investors.

Whale activity has been particularly intense, with significant deposits into exchanges like Kraken and Binance.

For instance, on April 14, a whale deposited 20,000 ETH worth $32.4 million into Kraken, likely preparing for further sales.

Another early 2015 ICO investor has been consistently selling ETH, offloading 4,812 ETH valued at around $8.0 million since the beginning of April.

Additionally, dormant whales that had been inactive for years have started selling their holdings.

This trend raises concerns about potential further sell-offs, despite some analysts predicting a recovery due to upcoming technological upgrades and market undervaluation.

The current situation has led some analysts to draw comparisons with Nokia's decline in the late 2000s, warning that Ethereum could face a similar fate if it fails to adapt to more scalable and faster platforms like Solana (CRYPTO:SOL).

However, not all analysts share this pessimism, citing potential for recovery based on future upgrades and current market conditions.

At the time of reporting, the Ethereum (ETH) price was $1,634.05.