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Dormant Ethereum (ETH) Whale Just Woke Up From Sleep: His First Moves

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Sat, 25/11/2023 - 10:45
Dormant Ethereum (ETH) Whale Just Woke Up From Sleep: His First Moves
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Ethereum ICO participant, dormant for over three years, has recently transferred 20,000 ETH (valued at approximately $42.4 million) to various destinations, including a 10 ETH deposit to the Kraken exchange. This awakening of a crypto giant correlates with movements in the Ethereum market that could have broader implications.

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This "whale," a term affectionately given to large-scale holders of cryptocurrency, originally acquired 100,000 ETH at the nascent stage of Ethereum's life, during the initial coin offering (ICO). With the ICO price around $0.31, the cost basis of this investment was a mere $31,000, a sum that pales in comparison to the current valuation of these assets.

 ETHUSD chart
ETH/USD Chart by TradingView

The timing of such a move is critical. The Ethereum price chart shows the currency testing a resistance point, attempting to sustain its momentum above the $2,000 mark. The emergence of such a significant player, particularly one initiating transactions of this magnitude, could signal to the market a shift in sentiment or liquidity that may catalyze further price action.

While the transfer of 20,000 ETH is substantial, the current Ethereum market cap is vast enough that such a transaction alone is unlikely to cause disruptive market waves. However, it does bring attention to the potential for large holders to move markets. Should this whale decide to liquidate a significant portion of their holdings, it could introduce a substantial amount of Ethereum into the market, potentially putting downward pressure on the price.

Conversely, if this whale were to lock in their holdings or disperse them in a way that suggests a long-term hold strategy, market confidence could be reinforced, possibly driving prices upward. The deposit to Kraken might be an initial step toward liquidity, but it does not necessarily predict a major sell-off.

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