A dormant Ethereum whale, known for holding its ETH for over eight years, has recently surfaced to initiate a significant sell-off of its Ethereum holdings. The investor, who originally purchased 16,636 ETH at a price of $5.24 per token, has begun offloading their stash for USDT (Tether), securing a staggering $38 million in profit from an $87K investment made in 2016.
The whale’s activity started with the sale of 437.79 Wrapped Ether (wETH) for USDT at an average price of $2,341, preceding a notable dip in Ethereum’s price below $2,300. While the whale still holds 16.1K wETH, which is valued at $36.87 million, experts suggest the remaining assets could also be sold soon, potentially leading to further price drops in the market.
Ethereum’s Market Position
The timing of the sell-off has raised eyebrows, as it coincided with a 5% daily dip in ETH’s price, dropping it below key support levels. Analysts are closely watching Ethereum’s market strength against Bitcoin, as the ETH/BTC pair hit its lowest point since April 2021, dipping below 0.04. This drop occurred despite Bitcoin also experiencing a 4% decline during the same period.
Adding to market concerns, there are rumors that the Ethereum Foundation has been rapidly selling off its ETH treasury, though these claims were denied by Ethereum co-founder Vitalik Buterin, who clarified that the transfers were part of routine donations to biomedical research.
Ethereum ETF Uncertainty
Another factor adding to the uncertainty is the lukewarm response to Ether Spot Exchange-Traded Funds (ETFs), which recently experienced negative flows for five consecutive days. However, Ethereum ETFs showed a slight recovery on September 13, 2024, gaining $1.5 million.
Despite this, chart analysts like Ali Martinez predict a potential freefall in Ethereum’s price, with concerns that it could plummet to $1,800 if the support range between $2,290 and $2,360 fails to hold. This critical support zone includes over 1.90 million crypto wallet addresses holding 52.30 million Ether.
As of the latest trading data, Ethereum is priced at $2,279.85, teetering on the edge of this support range. Analysts believe that if ETH closes below $2,290, it could signal a sharp decline, despite the current daily trading volume exceeding $16.7 billion.
On-Chain Signals and Market Sentiment
While Ethereum’s price volatility is a growing concern, on-chain metrics, such as network growth and transaction concentration, remain neutral, indicating indecision among market participants. According to data from CoinPaprika, Ethereum’s buy orders have outpaced sell orders in the last 24 hours, totaling $597 million in purchases versus $577 million in executed sales.
Why This Matters
Large-scale movements by major investors, like the Ethereum whale in question, are often viewed as indicators of emerging market trends. Tracking these whale wallets offers valuable insights into potential shifts in market dynamics, helping traders and investors better time their own market entries and exits.