Ivan Andonov Mon, December 1, 2025 at 7:11 PM GMT+8 2 min read In this article: - ETH-USD -5.35% YFI-USD -6.69%
Why did Ethereum drop? Well the fundamentals haven’t changed for ETH but my net worth has. slid sharply this week, falling more than 7% in 24 hours as a mix of structural and psychological pressures collided – but how is it impacting Ethereum price prediction.
A Yearn Finance exploit triggered the initial wave of selling, but the cascade quickly spread across the market, sending BTC down 5% and pulling total crypto market cap below $3Tn.
Meanwhile, crypto whales are selling their bags, and short sellers sense an opportunity. Here’s what you need to know for the ETH price:
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Why Did Ethereum Drop? A 2015 ICO Whale Reawakens After a Decade
One of the day’s biggest headlines came from an on-chain alert showing a 2015 Ethereum ICO wallet, that has been dormant for ten years, moving 40,000 ETH, originally purchased for $12,400 at $0.31. That stash is now worth roughly $120 million, a 9,677x return by today’s pricing.
Despite fears of a selloff, no exchange deposits were detected.
Lookonchain: “The transfer appears to be an internal move, not a liquidation event.”
Historically, early-era ETH whales have caused more social-media panic than real market damage. Dormant wallet activations are narrative events, not typically liquidity events.
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The Yearn Exploit Sparks a Broader Selloff: What’s Next For Ethereum Price Prediction?
The real trigger came from a Yearn Finance exploit reported by CoinDesk, which blindsided markets already stretched by leverage. As the exploit circulated, ETH futures unwound aggressively, and more than $600M in crypto liquidations hit the tape, per CoinGlass.
CoinGlass data shows a sharp increase in ETH futures open interest through late November, followed by a violent flush as traders were forced out. Retail investors accused insiders of front-running the exploit, though no evidence supports the claim.
Meanwhile, Taiwanese whale Machi Big Brother once again found himself on the wrong side of volatility. His partial liquidation left him holding 3,300 ETH at 25x leverage, with a liquidation price of $2,831.58.
Screenshots of his HYPE and ETH perpetual positions show another $1.7M in forced closes and a -108% ROE. Analyst Wukong: “This is what happens when you treat ETH like a casino chip instead of collateral.”
Market Conditions Still Favor Volatility For ETH USD Price
From a data perspective, Ethereum remains in a fragile spot.
CoinGecko shows ETH trading on fading spot volume, while Glassnode’s funding rate metrics indicate an unhealthy tilt toward high leverage even after this washout. FRED data on global liquidity continues to trend downward as Japan signals tightening and US real yields remain elevated.
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Read original story Why Did Ethereum Drop? Crypto Crash Dents Ethereum Price Prediction for December by Isaiah Mccall at 99bitcoins.com
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