What unfolds when a major player decides to move some of the ETH they acquired during the initial Ethereum ICO phase? This exact scenario has recently transpired, as per revelations from Lookonchain. The implications of such a move could be far-reaching.
Recent reports indicate that a significant ETH holder from the Ethereum ICO days has transferred 3,000 ETH out of their wallet. Analysis by Lookonchain further shows that this same wallet previously offloaded 7,000 ETH at the beginning of July this year. The significance of this action lies in its potential impact on the cryptocurrency’s market dynamics.
A 15% drop in ETH’s price followed the July sale, suggesting that news of such large transactions could be interpreted as bearish signals. This may trigger increased selling pressure in the market in the days ahead.
At present, ETH is already experiencing notable selling pressure, with its price hovering around $2,526 at the time of this report, marking an 8% decline from its recent peak. Noteworthy is the retesting of a short-term support line within the last 24 hours, accompanied by a modest rebound.
In essence, Lookonchain’s analysis hints at the possibility of heightened selling activity in the near future from the Ethereum ICO whale. This potential scenario contrasts with the expectation of ETH rebounding off the aforementioned support level.
Anticipate Increased ETH Volatility – The Direction Remains Uncertain
An analysis of ETH’s exchange flow data indicates that both inflows and outflows have reached levels signaling an impending shift in the market direction.
This sets the stage for a potential spike in volatility, although the outcome remains uncertain.
In the past 24 hours, exchange inflows amounted to 144,830 ETH, while outflows stood at 140,614 ETH, underscoring a prevailing sell pressure. Nonetheless, with the price seeming to stabilize at the support level, whale activity could have influenced this development.
Insights from IntoTheBlock also highlight a rise in the amount of ETH entering whale addresses, totaling 360,320 ETH, while outflows from such addresses decreased to 248,590 ETH.
Recent data on ownership patterns indicates ongoing accumulation by whales at current price levels.
However, the absence of a significant price surge in the last 24 hours points to a notable degree of uncertainty, potentially resulting in subdued demand.