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The ongoing price recovery of Ethereum (ETH) might be derailed if investors price in a likely dump from the coin’s Initial Coin Offering (ICO) era. Per data from crypto analytics platform Lookonchain, 10,000 ETH is on the line if this whale chooses to sell.
Ethereum whale position
According to Lookonchain's insight, the ICO whale stayed dormant for two years before resurfacing. The 10,000 ETH fund was moved to Kraken exchange and is valued at approximately $24.37 million.
Mushumir ButtTypically, when whales send funds to an exchange, the motive is largely streamlined and often revolves around sell-offs. Though moving funds to centralized exchanges might also imply custody moves, historical trends show that most tend to downsize their position.
This particular whale participated in the Ethereum ICO, receiving 50,000 ETH. At the time, the ICO he participated in cost about $15,500, and the funds are now worth $121.85 million. ICO whales sit on a big pile of cash, with most still HODLing.
Numerous whales have woken up in the past few months to sell their stash. This has been the trend since the harsh crypto winter eroded the gains from most of these whales' valuations.
Will Ethereum price be impacted?
Transferring 10,000 ETH might seem a lot, but the fund is just a fraction of the circulating Ethereum supply. This means the lone whale cannot dilute the price even if the $24 million sell-off is confirmed.
Alex DovbnyaAt the time of writing, Ethereum's price was $2,425.45, up 5.15% in the past 24 hours. A coin in rebound mode also benefits from the bullish twist after the U.S. Fed cut the interest rate by 50 basis points on Sept. 18.
With a robust ecosystem and positive on-chain sentiment, Ethereum is poised to sustain its resilience even more in the wake of a whale sell-off.
Arman Shirinyan
Dan Burgin
Alex Dovbnya