Ethereum (ETH), the second largest cryptocurrency by market capitalization, witnessed a significant shift that saw a whale investor move 15000 ETH to the crypto exchange Kraken.
Spot On Chain tracked the whale investor’s activity via a post on its verified X handle. Notably, the transferred Ethereum was worth about $3,065 per token, amounting to $45.98 million.
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Notedly, the significant ETH shift is coming after a week characterized by an impressive market run for Ethereum, sparking concerns about the possibility of a market reversal.
For context, Ethereum is changing hands at about $3,093, having witnessed a relatively insignificant 0.82% decline in the past 24 hours, according to its market statistics on CoinGecko, a prominent crypto and digital assets tracker.
Assessing Ethereum’s market activities in the past week, the digital assets tracking site revealed that the second largest crypto recorded a 5.7% upswing, with a 7-day range minimum and maximum prices of approximately $2,874 and $3,142, respectively.
Is A significant Price Reversal Imminent?
While large-scale crypto investors are renowned for orchestrating spontaneous price turnarounds through their purchasing and dumping activities, the same can not be said for this whale investor, considering he only deposited roughly 12.4% of his massive ETH holdings.
According to Spot On Chain’s tweet, the whale investor initially withdrew 120,874 ETH worth roughly $198.8 from Kraken at a selling price of $1,645 per token in September 2022. Dumping 15,000 ETH back to the trading platform implies that the trader still boasts significant Ethereum stores of about 105,874 coins valued at roughly $327.3 million based on the coin’s current price standings.
Presently, the trader’s net profit has amounted to an estimated $173 million, which could soar higher depending on the trader’s patience and Ethereum’s potential for price expansion.
Giant whale 0x7f1 deposited 15,000 $ETH (45.98M) to #Kraken at $3,065 4 hours ago.
The whale withdrew 120,874 $ETH from #Kraken at only ~$1,645 in early Sep 2022,
And now still holds 105,874 $ETH ($326M) with a total profit of $173M (+87%)!
Follow @spotonchain and set alerts… pic.twitter.com/3wsgjQd4DI
— Spot On Chain (@spotonchain) May 20, 2024
Opting For A Dumping Pattern To Avoid Dragging Attention.
Having established that the whale investor’s reported activity might not be significant enough to elicit a considerable price reversal, chances abound that the trader might have probably opted for a gradual dumping pattern to avoid attracting much attention.
We can only ascertain the above assertion by keeping a close tab on the wallet address and monitoring ETH’s market readings for signs depicting a remarkable market shift. In addition, the general crypto market sentiment and outlook have tremendous influence in directing crypto assets market actions. Hence, the importance of closely following trends to keep abreast of happenings in the crypto sphere.
Read More: Ethereum blockchain has a new Bitcoin version; exchanges confirm listings pre-launch
Analyzing Ethereum (ETH) Risk Assessment
According to Ethereum’s market risk assessment on the renowned cryptocurrency analytical platform Coincodex, the Ether coin boasts a relatively fair outlook, with its only drawback stemming from the fact that it outperformed only 45% of the best-performing 100 crypto assets.
Other indices depicting a favorable outcome for ETH include a price increment of about 71% in the previous year, trading above the 200-day Simple Moving Average, registering 17 green days in the last 30 days, having high liquidity, and a negative yearly inflation rate of about 0.25%.
Interestingly, Ethereum just concluded the first quarter (Q1) of 2024, recording a 59.02% increment, slightly higher than the 51.98% obtained in the same quarter in 2023. It is left to see how events unfold. However, considering the points highlighted in this insight, it is safe to say that Ethereum boasts a good expansion potential.
Don’t Miss: Ethereum Price Prediction 2024 – 2040
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