As a seasoned researcher who has witnessed the rise and fall of various crypto projects, I must admit that the recent moves of this Ethereum whale have piqued my curiosity. This dormant account, which amassed a staggering 398,889 ETH back in 2016 at an average price of just $6 per ether, is now selling off its holdings, raising questions about its intentions and the potential impact on Ethereum’s price.
An inactive Ethereum ‘giant’ or major holder has reappeared, causing curiosity since the cost of the most prominent altcoin is increasing alongside a general uptrend in the wider cryptocurrency market.
As reported by Lookonchain, a large investor or “whale” accumulated approximately 398,889 Ether, valued at around $2.4 million during that time, between January 18 and March 10, 2016. This was when one Ether cost an average of $6. Fast forward to November 7, 2024, the wallet, which had been dormant for more than eight years, became active again and started selling its holdings.
To date, this large investor (often referred to as a “whale”) has offloaded 73,356 Ether (ETH) with a total value of approximately $224.42 million. Post the sale, its remaining ETH holdings amount to roughly 325,533 ETH, equivalent to about $1.1 billion. The whale’s recent activity has sparked curiosity regarding their intentions and the potential consequences of such substantial sales on Ethereum’s market price.
Ethereum’s Underwhelming Rally
Although Ethereum experienced a 30% growth within the last month, it hasn’t been able to surpass the vital $3,500 level, falling far from its record high over $4,800 in 2021. This weak momentum may have influenced a large investor (referred to as a ‘whale’) to sell off their holdings, which suggests a decline in faith towards ETH’s immediate prospects for price escalation.
The large investor’s actions imply doubt about a significant surge in Ethereum’s price, prompting them to sell a large chunk of their investment, possibly due to anticipating a downward trend.
Currently, CryptoQuant’s recent analysis indicates a persistent bullish trend in the Ethereum derivatives market. The data shows that Ethereum’s open interest has surpassed its previous record high, now standing at over $13 billion – a 40% increase witnessed within the last four months. This significant rise in open interest underscores an escalating level of involvement in the Ethereum derivatives market.
At present, funding rates are showing a somewhat optimistic trend, implying that long-term traders have a significant influence. This hints at a market inclination towards an upward trend in the immediate future. Furthermore, Ethereum’s calculated leverage ratio has surpassed previous highs, standing above 0.40. This increase suggests more investors are taking on leveraged positions, as they venture into riskier derivatives trading.
Ethereum Rival Solana Hits ATH
On November 22nd, Solana (SOL), a competitor of Ethereum, hit an unprecedented high of $263, surpassing its highest point from more than three years ago. However, the path for SOL wasn’t smooth, particularly after the fall of FTX exchange, which led to a significant drop in SOL’s price down to single-digit figures towards the end of 2022.
2023 saw a gradual progression, marked by complications as the SEC classified SOL as a security, sparking regulatory issues. Yet, after experiencing a period of rapid expansion, Solana staged an impressive recovery, achieving a new high in its pricing history.
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2024-11-22 18:16