Are Ethereum ICO Whales Selling Off? 4,160 ETH Moved To Kraken

Despite the yuletide celebration, Ethereum (ETH) whales are making a strategic move that has left many in the community speculating. A whale has deposited 4,160 ETH to the Kraken cryptocurrency exchange. Ethereum USD seems to be struggling for now.

Spot On Chain, a data analytics platform, identified the whale as an early investor. The Ethereum Whale acquired substantial holdings during Ethereum’s initial coin offering in 2015.

Ethereum’s ICO Whale Engages in Strategic Profit-taking

The 4,160 ETH valued at $14.5 million could signal an array of intentions. These include an intent to sell, withdraw, or trade the deposited amount.

Generally, when a user moves funds to an exchange, they typically engage in one of the activities mentioned earlier. However, Spot on Chain had no clue about the plans of this ICO whale.

Notably, this whale, which adopted Ethereum very early, received 20,000 ETH during the Genesis block in July 2015.

The value of all the holdings back then was about $6,200. Such a purchase at its current market value would amount to $66,600,000, a clear indication of the price growth of the asset.

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This positions the Ethereum ICO whale as one of the beneficiaries of Ethereum’s massive value appreciation.

Meanwhile, the whale has been actively staking their Ethereum holdings and earning rewards.

It actively utilized the Ethereum 2.0 Proof-of-Stake system and had a strategic trading pattern. Notably, the whale offloads or sells ETH when the coin is at market peaks for maximum profit-taking.

Interestingly, despite the recent Kraken exchange deposit, the whale still has 7,043 ETH staked. This volume of holding is worth approximately $24.6 million.

Therefore, potential selloffs of a portion of its holdings remain an occasional trend.

How Whales Influence Ethereum USD Price Outlook

Analysts have given insights into how the Ethereum ICO whale and other ecosystem whales could impact ETH price performance.

Primarily, the movement of such a huge volume of Ethereum could influence market prices. If the whale decides to sell the funds immediately, it could create supply pressure and result in a price decline.

Sometimes, the move alone could ignite panic and stir other investors to sell, further driving down the price.

As for this whale, its historical precedent shows it sells at market peaks. This has sparked speculation in the community that Ethereum might soon hit a local top in price.

If this sentiment gains traction, it could impact ETH’s price growth as traders engage in selloffs to avoid a loss should the price crash.

This is particularly possible given that market observers monitor whale movements closely for clues to general market trends.

Meanwhile, the ETH price in the last seven days shows that the coin is battling market fluctuations.

Ethereum USD has been unable to find support at the $3,500 price level. Every successful retracement to $3,500 is usually short-lived, and ETH faces resistance at the $4,100 level.

As of this writing, ETH price was trading down by 4.52% at $3,321.99. However, investors appear confident of the asset as market volume is up by 12.39 at $20.78 billion.

Role of Ethereum USD Fundamentals

Market observers say Ethereum could boost its resilience by reducing transaction fees to make the chain attractive to more users.

It will also help Ethereum remain competitive. Additionally, improving technology that enhances the long-term security and decentralization goals could trigger positive sentiment.

The Ethereum Foundation has lined up some upgrades like Pectra and Fusaka to achieve more chain functionality.