As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless instances where whale movements can significantly impact the price dynamics of various assets. However, in the case of Ethereum (ETH), I am less concerned about this particular sell-off for several reasons.
The current rise in Ethereum‘s (ETH) price could potentially be disrupted if investors factor in a potential sale of ETH originating from its Initial Coin Offering (ICO) period. According to data from the crypto analytics platform Lookonchain, approximately 10,000 ETH is at risk if this large investor decides to cash out.
Ethereum whale position
As per Lookonchain’s analysis, a significant investor in Initial Coin Offerings (ICOs) remained inactive for two years before making a reappearance. The 10,000 Ether (ETH) that this whale had invested was subsequently moved to the Kraken exchange and is currently worth around $24.37 million.
Generally speaking, when whales transfer funds to an exchange, their primary intention is usually focused on selling off their holdings. However, moving funds to a centralized platform may sometimes indicate a change in custody as well. Interestingly, past patterns suggest that the majority of these large investors typically reduce their positions.
In simple terms, this specific whale took part in an Initial Coin Offering (ICO) related to Ethereum, acquiring 50,000 Ether tokens. At the time of the ICO, the investment was approximately $15,500. Currently, those tokens are worth a staggering $121.85 million. These ‘whales’ from the ICO have amassed a substantial fortune, with many choosing to hold onto their Ether.
In recent months, many whales have become active in the market, offloading their cryptocurrency holdings. This trend has persisted as the severe crypto winter reduced the value of most whales’ investments.
Will Ethereum price be impacted?
10,000 Ether may appear substantial, but it’s merely a tiny slice of the total Ethereum in circulation. Consequently, a single ‘whale’ cannot significantly impact prices by selling off $24 million worth of Ether, assuming this sale is indeed confirmed.
Currently, Ethereum’s price stands at $2,425.45, marking a 5.15% increase over the last 24 hours. This surge can be attributed to Ethereum entering a recovery phase following the U.S. Federal Reserve’s decision to lower interest rates by 0.50% on September 18th, which has added a bullish momentum to the cryptocurrency market.
As a researcher immersed in the dynamic world of blockchain, I find myself confidently asserting that Ethereum’s sturdy infrastructure and optimistic on-chain atmosphere set it up remarkably well to maintain its robustness, regardless of any potential whale-induced sell-offs.
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2024-09-19 16:48