Ethereum
Ethereum Whale’s $56 Million Sale Could Have THIS Market Impact
- A major whale sold part of its ETH holdings
- Altcoin price fell, while Ethereum network growth also declined
Ethereum [ETH]The price of has seen a massive rise over the past few weeks, fueled by the announcement of new ETH spot ETFs. Despite the optimism surrounding the network, a large whale recently decided to sell its holdings.
The whales turn away
On June 8, a large transaction took place on the Ethereum blockchain. A major whale transferred 15,200 ETH, worth approximately $56.47 million, to Kraken. This particular address received massive holdings of 67,000 ETH directly from the Ethereum Foundation. It is further believed that this same address also received an initial 200,000 ETH during the Ethereum Genesis block, likely signifying participation in the ICO (Initial Coin Offering) that launched the Ethereum network.
Here, it is worth noting that despite this recent transfer, the wallet still holds a balance of 41,000 ETH – valued at approximately $151 million.
This large transaction may be interpreted by some investors as a sign that the whale is losing confidence in the future of Ethereum, pushing it to sell its holdings. This fear-based selling could trigger a domino effect, driving the price even lower.
Additionally, the unknown purpose of the transfer may cause further uncertainty.
Source:
How is ETH doing?
At press time, ETH was trading at $3,683.83, with the price down 3.14% over the past 24 hours. Despite this sudden drop in the price of ETH, the overall price action trend appears relatively positive.
And yet, network growth for ETH has declined significantly over the past few days, implying that new addresses are losing interest in ETH and were not ready to purchase ETH at the current rate. If the price drops further, ETH may start to look lucrative to new investors in the future.
Coupled with the decline in network growth, the speed at which ETH trades has also declined significantly.
Source: Santiment
In terms of overall network activity, gas consumption on the Ethereum network has decreased in recent days. Additionally, overall NFT transactions on the network have also fallen.
The lack of activity on the Ethereum ecosystem can be detrimental to both the network and the price of ETH in the long term.
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Source: Santiment