Ethereum Whale Returns, Borrows $2M via Aave as AAVE Targets Breakout

After nearly two years of inactivity, an Ethereum whale resurfaced on Monday, January 26, depositing 2,000 ETH worth approximately $5.76 million into the Aave V3 lending protocol and borrowing $2 million in USDC, according to the crypto analyst, Onchain Lens.

The move marked the wallet’s first major activity since 2024 and immediately drew attention from traders monitoring large-holder behavior for potential market signals.

Source: Onchain Lens X Post

Shortly after borrowing the stablecoins, the whale rotated the funds back into Ethereum, acquiring an additional 686 ETH. Following the transactions, the entity now controls a total of 10,759 ETH, valued at roughly $31.24 million, spread across three wallets. 

Onchain Lens also interprets the activity as a leveraged DeFi strategy rather than a routine transfer, signaling renewed engagement with Ethereum exposure through decentralized lending markets while also introducing liquidation risk if prices reverse sharply.

Also Read: AAVE Struggles at $144 Support Despite Strong DeFi Fundamentals

AAVE Could Ignite a Rally If Mid-Channel Support Holds

After this significant on-chain movement, the native token of Aave, AAVE, is once again in the limelight as crypto analyst Alpha Crypto Signal identified the decisive move on Monday, January 26, that AAVE is able to hold the midline of the descending price channel, which is considered a short-term structural pivot point.

Source: Alpha Crypto Signal X Post

In a previous rally, after the defense of support, AAVE had a relief rally, rising to $180.37 and increasing by about 25.7%. There were buyers entering decisively as confirmation occurred at the pivot, whereas traders betting on a decline were caught offside. There has been a brief reprieve in bearish expectations in terms of market volatility.

After this relief rally, sellers step in and push the price back toward the key support level, which is currently being tested. If buyers defend this key level again, then it could push the price toward $180 in the days ahead.

Technical Outlook Suggests Easing Bearish Pressure

Based on the TradingView data, as of Monday, January 26, the AAVE token is still in a short-term downtrend, despite the recent bounce. The price is still trading below the 20, 50, 100, and 200 exponential moving averages, which are now resistance levels.

Source: TradingView

Bollinger Bands continue to be expanded, indicating a high level of volatility, and the fact that the price is still below the middle band means sellers are still in control. The Relative Strength Index (RSI) has bounced back from its oversold levels and is trading in the low 40s, indicating a slowing down of bearish momentum rather than a reversal. 

Key support levels lie in the range of $147 to $150, while resistance levels lie in the range of $154 to $158. Reclaiming the levels of $160-$165 is necessary to turn the market structure bullish; otherwise, a further fall towards the low $140s is possible.

Also Read: AAVE Set for $200 Breakout as Balance Expands Institutional DeFi Access