Ancient Ethereum Whale Returns: What Is Happening?

Amidst market consolidation, a significant participant from Ethereum’s Initial Coin Offering (ICO) emerges, causing a stir in the ETH ecosystem. Let’s explore the reaction of Ethereum to this awakening.

As the market experiences a period of consolidation, where prices stabilize and trading volumes taper off, unexpected events can trigger excitement. In this case, a notable whale from Ethereum’s ICO has re-entered the scene, capturing the attention of market participants.

As per the tweet shared by EmberCN, the initial coin offering (ICO) address had its most recent selling period within the current year. In that particular timeframe, a significant investor transferred 36,000 ETH to the Kraken exchange.

Typically, when there is a sudden surge in activity from a dormant wallet, it often indicates an intention to sell. Nevertheless, it remains uncertain whether this recent transfer implies that the ETH whale intends to take the same course of action as they did in 2017.

What Inspired The Whale’s Return?

Amidst the speculation surrounding the purpose of this activity, there is a possibility that ETH will continue to sustain a price above $1,800. Furthermore, the number of ETH coins circulating within a 90-day period, which experienced a sudden increase as of 21 June, has now decreased to 28,700 at the time of this update.

The decline in the number of transfers indicates that only a small number of long-term holders have been engaged in recent transactions. Therefore, the selling pressure on ETH may not be substantial at this point.

However, the current data reveals a significant surge in ETH’s exchange inflow. As reported by Santiment, the metric has reached a staggering 114,000. This metric measures the total transfer of assets into centralized wallets, and a high exchange inflow typically indicates an amplified inclination to capitalize on profits or divest a portion of the coins.

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A Drop Is Not Imminent

Based on the price action analysis, the Moving Average Convergence Divergence (MACD) indicates a potential continuation of ETH’s upward momentum.

The prevailing market conditions were reflected in the indicator, as the blue dynamic line remained positioned above the orange dynamic line. This configuration strongly indicated that buyers continued to exert dominance in the market.

Additionally, the positive reading of the indicator implies that it may not be advantageous for traders to initiate short positions currently.

Had the situation been reversed, it would have suggested that ETH had a higher likelihood of experiencing a decline below its current price at the time of observation.

Although the Ethereum ICO address may possess a substantial quantity of ETH, the intentions and actions of the address holders can differ significantly. Therefore, it is important to recognize that decisions regarding profit-taking or any investment-related activities are subjective. At present, any speculation regarding the selling motives of the ETH whale remains unconfirmed.