An ancient Ethereum whale has made a sudden appearance after being dormant for over five years. The whale address, which had accumulated 10,266 ETH in 2017 through mining activities, recently transferred the entire amount, worth around $16 million, out of the wallet.
The transfer also included the movement of 1,322 ETH, worth around $2 million, to cryptocurrency exchange Poloniex, which suggests that the whale may be planning to liquidate some of their holdings. The timing of the transfer is significant, as it coincides with Ethereum's recent price dip, which has seen it fall to a local support level.
An address that has been dormant for more than 5 years transferred 10,266 $ETH ($16M) out.— Lookonchain (@lookonchain) March 6, 2023
The 10,266 $ETH was obtained through mining in 2017.
Among them, 1,322 $ETH ($2M) was transferred to #Poloniex.https://t.co/hsXiBh5iS2 pic.twitter.com/7L1nkx6Fe6
The whale's sudden move is not an isolated incident, as other dormant whales have recently woken up and begun to move large amounts of Ethereum. These moves have been seen as a sign of profit-taking activities, as these whales may be looking to cash in on their holdings before a potential market downturn.
The activity of dormant whales on the Ethereum network is an important factor to consider, as it can significantly affect the supply and demand dynamics of the cryptocurrency. However, it is important to note that whales are not necessarily bad actors, and their activity is often a natural part of the market cycle.
As Ethereum continues to move downward, we might see more profit-taking activities. The overall impact of the profit-taking from a relatively small whale will most likely not appear on the market even in the case of market selling without proper distribution. However, Ethereum is not in the best position right now, which is why even a slightest spike in selling activity might lead to downward movement.