Long-term Ethereum Holders Take Profits at $4,000 Level: On-Chain Analysis

Source: TheCryptoUpdates Original Title: Original Link: https://www.thecryptoupdates.com/ethereum-whales-with-378-average-cost-sell-at-price-peaks-above-4000/

On-chain data shows something interesting happening with Ethereum’s oldest whales

These are the people who bought ETH when it was cheap—really cheap. Their average cost basis sits around $378, and they’ve held for five to seven years. That’s a long time in crypto.

What’s happening now is that whenever ETH crosses the $4,000 mark, these long-term holders start selling. It’s not panic selling, mind you. It’s calculated profit-taking. They’ve been through multiple cycles, seen the ups and downs, and they know when to cash in some chips.

The profit-taking patterns are consistent

In March 2024, these veteran whales realized about $600 million in profits in just one day. That’s a significant amount, but it gets bigger. By June 2024, that single-day profit-taking reached $1 billion. The pattern continued into 2025, with September seeing over $500 million sold from wallets that had held ETH for more than seven years.

October 2025 brought even older coins to market—ETH that had been sitting in wallets for over a decade. That’s remarkable when you think about it. Someone held through the 2017 boom and bust, through the 2021 cycle, and finally decided to sell in late 2025.

Analysis suggests these sell-offs consistently follow temporary price peaks. It’s almost like clockwork. Price goes up, whales take profits, price adjusts. Then the cycle repeats.

Despite selling, whales still hold substantial amounts

Here’s the thing though—even with all this selling, these long-term whales aren’t exiting completely. They still hold about 20.1 million ETH. That’s a massive amount, worth tens of billions at current prices.

The supply held for over five years has been decreasing gradually. Part of that is natural profit-taking, but there’s another factor at play. Starting in May 2024, ETH treasury companies began aggressive buying. They’re accumulating while some veterans are distributing.

It creates an interesting dynamic in the market. You have these original holders who bought at rock-bottom prices slowly reducing their positions. Meanwhile, institutional players and treasury funds are building positions, perhaps with different time horizons and objectives.

What this means for Ethereum’s market structure

This data tells us something about Ethereum’s maturation. Early adopters who believed in the project when it was just an idea are now taking profits. That’s natural—they’ve earned it after years of holding through volatility.

But the fact that they’re not dumping everything suggests they still believe in Ethereum’s future. They’re taking some profits off the table, maybe diversifying, maybe funding other projects, but they’re keeping significant exposure.

The entry of treasury companies as buyers provides a counterbalance. It shows institutional interest in Ethereum as an asset, not just as a technology platform. That dual nature—technology platform and digital asset—seems to be strengthening.

One could argue this gradual distribution from early holders to newer institutional buyers represents a healthy transition. It reduces concentration risk while bringing in new types of holders with potentially longer time horizons.

Of course, this is just one piece of the puzzle. Market dynamics are complex, influenced by many factors beyond whale behavior. But understanding these patterns helps paint a clearer picture of who’s buying, who’s selling, and at what price points.

It’s worth remembering that past patterns don’t guarantee future results. Markets evolve, participants change strategies, and new factors emerge. But for now, the $4,000 level appears to be a psychological trigger for some of Ethereum’s earliest supporters to take profits.