Dormant Billion-Dollar Ethereum Whale Takes Profit After Eight Years

by

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull runs and bear markets, but none quite like this current cryptocurrency boom. The story of the dormant Ethereum whale that has suddenly awoken and started cashing out its massive holdings is reminiscent of a long-term investor finally deciding to take their pension for a spin at the casino.

The positive outlook among cryptocurrency investors persists, as numerous individuals reap substantial returns from their initial investments. This prolonged optimism has further awakened a previously inactive Ethereum (ETH), worth billions, which is currently capitalizing on significant price increases from its extensive reserves.

Eight-Year Ethereum HODL ends in massive profits

Based on data from Lookonchain, a large investor (referred to as a “whale”) accumulated 398,889 Ethereum (ETH) between January 18 and March 10 in the year 2016. The average price of ETH during this period was around $6 per coin, resulting in a total investment of approximately $2.4 million at that time.

A significant whale, who amassed approximately 398,889 ETH (equivalent to around $1.34 billion today) by buying at an average price of roughly $6 per ETH between January 18 and March 10, 2016, is selling ETH once more! This whale had amassed this wealth over a period of about 8 years before becoming inactive, but now appears to be active again.

— Lookonchain (@lookonchain) November 22, 2024

Following this significant amassing, the whale entered a period of inactivity before resuming transactions on November 7, where it started offloading Ethereum. It’s speculated that the whale may have opted for a long-term storage approach, or simply recalled the funds at its disposal now.

Interestingly, this happened after ETH breached its $2,600 resistance level. The whale’s first sale happened when ETH traded at about $2,820. So far, out of the 398,889 ETH, the whale has sold off 73,356 ETH, worth about $224.42 million.

This represents a profit of approximately $222.02 million for the sales of less than one-sixth of their total holding. The Ethereum whale still has 325,533, valued at over $1.3 billion based on the current market price. 

It’s uncertain whether the whale will persist with their sales, or if they’ll choose to keep their impressive $222 million profit for the time being.

Impact on market and community speculations

The behavior of large Ethereum investors has ignited a discussion among Ethereum owners, as some believe that selling might influence Ethereum’s performance. They argue that this could prompt other big investors to sell Ethereum, potentially causing a drop in its price during the current bull market.

Despite various theories about the whale’s motive, financial experts argue that the investor made a shrewd decision by selling some of their holdings for a profit. They believe it was perfectly logical to do so, given that the asset in question had been purchased at an average price around $6.

Furthermore, it underscores the significant increase in Ethereum’s worth over time. At present, Ethereum (ETH) is trading at approximately $3,364, marking a 7.59% rise within the last day. The market volume has risen by 47.63%, reaching $51.73 billion, which suggests a growing enthusiasm for this alternative coin.

Read More

2024-11-22 14:31