Ethereum Faces $140M Dormant-Wallet Selling Pressure

Ethereum is facing renewed selling pressure after long-dormant wallets moved more than $140 million in ETH since October 5. The latest transaction came on Thursday, October 29, when a wallet inactive for three years deposited 2,119 ETH, worth approximately $4.99 million, to Coinbase, according to on-chain monitoring from Lookonchain.

ETH was trading at $2,251 on Friday, October 30, down 2.60% over 24 hours, while its market capitalization stood at approximately $274.96 billion. The Crypto Fear and Greed Index was 30, a reading that signals fear. The combination of renewed whale activity, weak fund flows and negative price momentum matters because exchange deposits can increase the amount of ETH potentially available for sale.

Three-year-dormant wallet sends 2,119 ETH to Coinbase

Lookonchain reported that an Ethereum wallet identified as 0x6D30, dormant for three years, transferred its full balance of 2,119 ETH to Coinbase on October 29. The transaction was valued at about $4.99 million at the time.

A deposit to a centralized exchange does not prove that the owner sold the tokens. It does, however, create a visible potential supply overhang. Traders often treat large exchange deposits from long-idle addresses as a bearish signal because the coins can be sold, used as collateral or distributed through other market operations.

The timing is also important. ETH is already trading near $2,251, and the market is showing fear rather than risk appetite. A wallet that had remained inactive for several years becoming active can therefore have an outsized psychological effect, even when the transfer itself is small relative to Ethereum's total market capitalization.

More than 56,000 ETH moved from long-idle addresses

The latest Coinbase deposit is part of a broader pattern. Market reporting based on on-chain monitoring identified more than 10 large transfers from long-dormant Ethereum wallets between October 5 and October 29. The wallets moved approximately 56,000 ETH, worth more than $140 million at reported prices.

Several of the larger movements involved transfers to centralized exchanges, including Coinbase and Kraken. The observed activity does not establish that every wallet sold its ETH, and wallet attribution can change as analysts gather more information. Still, the aggregate movement adds to distribution concerns at a time when investors are already watching for signs of supply returning to the market.

• Immediate signal: dormant holders are becoming active and moving substantial balances.
• Market risk: exchange-bound ETH can become available for sale.
• Sentiment effect: renewed activity from early holders can reinforce fear and reduce dip-buying confidence.

ETF outflows deepen the pressure on ETH

U.S. spot Ethereum ETFs had recorded approximately $1.35 billion in net outflows for October through October 28, according to SoSoValue data cited in market reporting. That would make October the second-largest monthly outflow in the available record, behind November 2025, when reported outflows reached about $1.42 billion.

The latest completed U.S. trading session was Thursday, October 29. SoSoValue data cited by PANews showed approximately $105 million in net outflows for that session, extending withdrawals to a fourth consecutive trading day. BlackRock's ETHA recorded the largest reported daily outflow at approximately $71.68 million, while Fidelity's FETH posted an inflow of about $2.90 million.

ETF flows are not the same as direct exchange selling, but they are an important institutional demand indicator. Persistent redemptions remove a source of spot exposure that might otherwise absorb selling from whales or short-term traders. When ETF outflows occur alongside exchange deposits, the market can interpret both as evidence that demand is failing to keep pace with available supply.

ETH price action remains vulnerable near $2,251

At $2,251, ETH is trading with a clear negative short-term bias based on the supplied live market data. The 2.60% daily decline is not, by itself, evidence of a lasting trend reversal. It does show that sellers remain active as the market processes whale transfers and ETF withdrawals.

Gas wars and congestion are not the main bearish catalyst

Ethereum's current weakness is being driven more directly by capital flows and holder behavior than by a fresh gas-fee shock. Gas fees were reported at low levels on October 30, while network congestion was reported at approximately 49.1%. That suggests the market is not currently dealing with the type of extreme demand surge that historically creates gas wars and sharply raises transaction costs.

This distinction matters. During periods of intense decentralized-finance or non-fungible-token activity, gas wars can force users to compete for block space, producing congestion and higher costs. The present setup is different: low reported gas costs reduce friction for users, but they do not automatically create buying demand for ETH. In other words, cheaper network activity is positive for usability, yet it does not offset the immediate pressure from dormant-wallet transfers and ETF redemptions.

What traders should watch next

The key question is whether the October outflows and dormant-wallet movements continue into the next U.S. ETF sessions. A slowdown in redemptions could help stabilize sentiment, while additional large deposits to exchanges would reinforce the bearish supply narrative.

• Track whether more long-dormant wallets transfer ETH to Coinbase, Kraken or other exchanges.
• Watch the next reported U.S. spot Ethereum ETF flow figures for signs of outflows easing or accelerating.
• Monitor whether ETH can hold around the current $2,251 area without relying on unsupported price targets.
• Check exchange balances and on-chain transfer activity for evidence that deposited ETH is being sold rather than merely repositioned.
• Follow the Fear and Greed Index for a shift away from fear, which could signal improving risk appetite.

Ethereum dormant-wallet selling pressure FAQ

Did the wallet definitely sell the 2,119 ETH?

No. Lookonchain reported a deposit of the wallet's full balance to Coinbase, but the transfer alone does not confirm an executed sale.

Why are dormant-wallet transfers bearish?

Long-inactive holders moving ETH to exchanges can increase the potential liquid supply and often affect sentiment, especially when the market is already weak.

How large are the reported October ETF outflows?

U.S. spot Ethereum ETFs had recorded approximately $1.35 billion in net outflows through October 28, based on SoSoValue data cited in recent market reporting.

Are gas wars causing the current ETH decline?

There is no confirmed evidence in the latest data that gas wars are driving this move. Reported gas fees were low on October 30, while the more immediate catalysts are ETF outflows, dormant-wallet activity and broad risk aversion.

What could improve Ethereum sentiment?

Sentiment could improve if ETF withdrawals slow, dormant wallets stop sending ETH to exchanges and ETH stabilizes after the current decline. These are market conditions to monitor, not guaranteed outcomes.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency prices are volatile, and readers should conduct their own research before making investment decisions.