Ethereum OGs Revive Dormant Wallets for Massive ETH Accumulation via Looped Borrowing Strategy

Ethereum Whales Emerge from Dormancy to Leverage Aave for ETH Purchases

In a striking display of market confidence, two long-dormant Ethereum wallets have sprung back to life, executing a sophisticated looped borrowing strategy to amass significant ETH holdings. According to blockchain analyst @lookonchain, these wallets, inactive for five years, deposited a combined 44,490 ETH valued at approximately $98.3 million into the Aave lending protocol. This move allowed them to borrow 104 million USDT, which they promptly used to purchase 45,319 ETH at an average price of $2,295 per token. This transaction, timestamped around February 2, 2026, highlights a bullish sentiment among Ethereum's original guardians, often referred to as OGs, who are betting big on ETH's future price appreciation through leveraged positions.

The mechanics of this looped borrowing involve using deposited ETH as collateral to borrow stablecoins like USDT, which are then converted back into more ETH, effectively amplifying their exposure. This strategy not only increases their ETH stack but also leverages the low-interest borrowing rates on Aave to minimize costs. From a trading perspective, this could signal strong support levels around the $2,295 mark, as these whales are essentially creating a floor by accumulating at this price. Traders should monitor key resistance levels; if ETH breaks above $2,500, it might trigger further buying momentum, potentially pushing prices toward $3,000 based on historical patterns. On-chain metrics from this event show a spike in Aave's ETH deposits and USDT borrowing volumes, indicating rising liquidity and interest in DeFi protocols for leveraged trading.

Market Implications and Trading Opportunities in ETH Pairs

Analyzing the broader market context, this accumulation comes at a time when ETH has been consolidating after recent volatility. Without real-time data, we can reference the transaction's average buy price of $2,295 as a pivotal point. For spot traders, this whale activity suggests potential entry points near $2,200-$2,300 support zones, with stop-losses below $2,100 to mitigate downside risks. In futures markets, leveraged long positions on ETH/USDT pairs could yield high returns if sentiment turns positive, especially with trading volumes on major exchanges showing increased activity around these levels. Cross-pair analysis reveals correlations with BTC; if Bitcoin maintains above $50,000, ETH could see amplified gains due to its beta to BTC movements.

Furthermore, this event underscores the growing institutional interest in Ethereum, as OGs often influence market trends. Trading volumes for ETH spiked notably during this period, with on-chain data revealing over 45,000 ETH bought in a short window, potentially contributing to short-term price stability. For options traders, consider bullish calls expiring in the coming months, targeting strikes around $2,500-$2,800, given the implied volatility boost from such large-scale buys. Risk management is crucial, as looped borrowing carries liquidation risks if ETH dips below collateral thresholds, which could lead to forced selling and downward pressure.

Looking ahead, this strategy might inspire retail traders to explore similar DeFi tactics, boosting overall market liquidity. Ethereum's upcoming upgrades, like potential scalability improvements, could further validate these bets. In summary, this whale maneuver provides actionable insights: watch for ETH price rebounds from $2,295, integrate volume indicators for confirmation, and diversify into ETH/BTC or ETH/USDC pairs for hedged positions. By staying attuned to such on-chain activities, traders can capitalize on emerging trends in the cryptocurrency market.