Ethereum ICO Whale Dumps Another 5000 ETH, Crash To Worsen?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bullish and bearish trends. However, the recent actions of the Ethereum ICO whale have raised red flags that are hard to ignore.

A significant event unfolded in the Ethereum (ETH) market, as a notable investor, who acquired 1 million ETH during the Ethereum ICO for around $0.31 each, has just sold another 5,000 ETH. This repeated selling activity has raised eyebrows within the cryptocurrency community. Furthermore, this action comes at a challenging time for ETH, as its price hovers near $2,500 and has experienced a 4% decline over the past 24 hours.

Ethereum ICO Whale Continues ETH Selloff Spree

As an analyst today, I’ve observed yet another significant transaction: a whale deposited roughly 5,000 Ether, equivalent to around $13.2 million, into their OKX account. This latest move is part of a larger trend where this particular whale has been making substantial Ether deposits. In fact, over the past month, they’ve added approximately 48,500 Ether, or $154 million, to their OKX holdings.

Over the past few days, the activities of a significant Ethereum investor have ignited worry across the community, as it appears this investor has been progressively selling large amounts of ETH. This whale started off by disposing of 1,000 ETH on July 8, 2024. Since then, both the frequency and the scale of these deposits have significantly grown.

Following an increase in the dump value to 1,500 ETH, the quantity escalated to 2,000 ETH, then 2,200 ETH, and ultimately 2,800 ETH. Notably, a significant Ethereum ICO investor (often referred to as a whale) has carried out three successive deposits, each worth 5,000 ETH. This persistent selling approach has sparked market anxiety, leading to an Ethereum price decrease of approximately 4%, pushing it down to the $2,500 level today.

Due to recent developments, there is growing apprehension among investors about a possible additional sale of Ethereum by the ICO whale, leading potentially to a drop in ETH prices. In particular, online communities have expressed worry over the whale’s substantial ETH holdings amounting to approximately 951,500 tokens, currently valued at an impressive $2.41 billion. If this large quantity of ETH were to flood the market, it could significantly destabilize its current prices.

ETH To Crash Below $2800?

Currently, market observers are keeping a keen eye on the bulls’ efforts to drive prices near the $3,000 level again. But, technical signs from Coingape indicate potential danger ahead as the upcoming death cross between the 50-day and 200-day moving averages could mean increased selling activity in the upcoming days.

Ethereum ICO Whale Dumps Another 5000 ETH, Crash To Worsen?

This specific chart pattern, which usually indicates a negative trend for Ethereum, might cause its value to drop towards $1,830. Moreover, there’s been an increase in the number of long positions being closed (liquidated), totaling around $33.28 million. Short positions, on the other hand, also saw liquidations worth $11.88 million. This significant amount of liquidations suggests that the Ethereum price could experience more decreases in the near future.

While one side shows an impressive $105 million influx into Spot Ethereum ETFs at the beginning of last week, the latter part saw three straight days of outflows. This contradictory trend in the ETF market has sparked interest among analysts from QCP Capital, who are now paying closer attention to Bitcoin ETFs, suggesting a potential shift in focus.

Ethereum Seized In Plus Token Ponzi Scheme

During the period when large investors in the Ethereum Initial Coin Offering (ICO) are selling off their holdings, there have been rumors swirling due to reported Ethereum transactions linked to the Chinese government. On August 8th, it was found that wallets containing Ethereum seized from the Plus Token ponzi scheme moved approximately $2 billion worth of ETH.

A study conducted by EmberCN revealed that approximately 789,534 Ethereum were sent to the Binance DEX (Bidesk) platform. These transfers took place through multiple wallets over the period spanning from June to September 2021.

After the exchange filed for bankruptcy at the end of the year, the Ethereum assets were transferred to the cryptocurrency exchange Huobi instead. Interestingly, a total of 268,843 ETH was sent to Bitshark (Bidesk) through four designated deposit addresses.

As a seasoned cryptocurrency investor with years of experience in the volatile world of digital assets, I find myself intrigued by the recent developments involving Ethereum and the platforms Bidesk and Huobi. From my perspective, it seems that some Ethereum assets were either held onto or withdrawn from Bidesk during 2021 but not transferred to Huobi, which raises questions about their ultimate destination.

Based on their findings, EmberCN suggested that it’s probable that a large portion of the 789,534 ETH sold by the Chinese government in 2021 occurred. This recent transfer of approximately $63 million worth of ETH is unlikely to cause significant market disruption. However, this sale combined with extensive long liquidations, the dump from Ethereum ICO whales, and reduced enthusiasm for ETH ETFs warrants a note of caution.

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2024-08-12 12:36