Yesterday, Ethereum, the second-largest cryptocurrency by market capitalization, saw its value decline by 3%, dropping below the $3700 mark.
A significant move by a whale, who accumulated a substantial position in Ethereum seven months ago, is suspected to be a major factor. This whale recently deposited 7,916 ETH into the Chainup exchange, valued at approximately $29.27 million, potentially indicating a sell-off to realize profits.
From November 2023 to February 2024, this whale strategically acquired 10,594 ETH through the decentralized exchange 1inch, with an average purchase price of $2,553 per ETH. If the entire amount deposited is sold, the whale stands to make a profit of $9.06 million, showcasing a successful trading strategy and substantial gains.
An Ethereum Foundation Makes Strategic ETH Wallet Transfers
In a related development, an Ethereum Foundation-associated wallet transferred 15,254 ETH, worth around $56.1 million, to the Kraken exchange as Ethereum’s price began to decline.
This wallet’s ETH holdings are linked to an Ethereum Foundation wallet and another wallet that initially received 200,000 ETH during the Ethereum ICO. The timing of these transactions suggests a potential connection to the recent market movements and might be contributing to the downward pressure on Ethereum’s price.
When the $ETH price started to drop, an #EthereumFoundation-related wallet deposited 15,254 $ETH($56.1M) into #Kraken 8 hours ago.
The $ETH in this wallet comes from an #EthereumFoundation wallet and a wallet that received 200K $ETH in the Ethereum ICO.https://t.co/j7KPmMt1i8 pic.twitter.com/8Oi5zWMeiC
— Lookonchain (@lookonchain) June 8, 2024
These significant transactions by large holders highlight the volatility and market impact that whales and institutional entities can have on cryptocurrency prices. As Ethereum continues to experience fluctuations, the market will be closely watching these large movements and their implications for future price action.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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