- The Ethereum market has experienced a notable price drop, attributed largely to a significant whale movement.
- On-chain data reveals movements suggesting a potential reversal in the near future.
- Market observers are keenly watching the activities of early Ethereum adopters liquidating substantial holdings.
Ethereum’s recent price volatility linked to ICO whales’ large transactions hints at an imminent market turnaround. Stay updated with the deepest insights.
Significant Whale Movements Impacting Ethereum Price
Recent on-chain analysis has disclosed that a prominent Ethereum ICO participant has been actively liquidating large portions of their holdings over the past several days. In a series of transactions, this whale has moved substantial amounts of ETH, causing ripples in the market.
Ethereum ICO Participant’s Major Transactions
Data from on-chain analytics provider SpotOnChain indicates that a significant Ethereum ICO whale has transferred a total of 5.5K ETH, equivalent to $19.3 million, to the Kraken exchange. This activity was precursory to a noticeable decline in Ethereum’s market price.
This same whale has consistently deposited substantial amounts of ETH into Kraken, with a cumulative total of 10K ETH worth $35.4 million over the past two days. Originally, this investor acquired 150K ETH at an ICO price of $0.31, translating their initial $46.6K investment into a current valuation of approximately $476 million, despite recent large transfers.
Limited Downside for ETH Price Due to Strong On-Chain Fundamentals
Despite the short-term bearish pressure, Ethereum’s on-chain metrics reflect underlying resilience. Over the past ten days, a significant 4.1 million ETH has been withdrawn from exchanges, reducing the available supply on centralized platforms. According to Glassnode, the current ETH supply on exchanges stands at 12 million, the lowest since 2016, representing only 10% of the total Ether supply.
This reduction in exchange-held Ethereum coupled with the anticipated launch of the spot Ethereum ETF suggests potential bullish momentum. Bloomberg analyst Eric Balchunas has projected that the Ethereum ETFs will commence trading by July 2, which could result in substantial inflows and an upward trend in ETH prices.
Conclusion
In summary, while Ethereum has encountered considerable selling pressure from ICO whales, the overall on-chain indicators signal a strong recoverability. Reduced ETH availability on exchanges and the upcoming ETF launch represent favorable conditions for a price resurgence. Investors are advised to closely monitor these developments as they could forecast Ethereum’s next significant price move.
