ETH Whale Sells 76k Coins: Impact on Ethereum Price?
An early investor in Ethereum's 2015 Initial Coin Offering (ICO) recently sold 76,000 ETH, raising concerns about the cryptocurrency's price. This significant selloff, after a decade of holding, has fueled speculation about the broader market sentiment among major Ethereum holders.
The ETH ICO Whale Selloff
According to a report, the investor initially acquired ETH at $0.31 per coin. The two-week-long selloff culminated in a final transfer of 2,000 ETH to Kraken, netting approximately $3.66 million. This followed several earlier transactions, including:
- April 30: 3,000 ETH transferred for approximately $5.39 million.
- May 2: Another 3,000 ETH transferred for around $5.53 million.
- May 5: 8,000 ETH transferred for approximately $12.74 million to a different wallet.
- Various smaller transactions were also recorded.
- Another significant transaction: 6,000 ETH for approximately $9.55 million.
With ETH trading at $1,834.18 during the final transfer, the investor’s decade-long investment yielded substantial profits. Such large selloffs often create market uncertainty, especially when originating from long-term holders.
Implications for Ethereum Price
At the time of writing, Ethereum is experiencing slight bearish pressure, pulling back from its recent high above $2,000. CoinMarketCap data shows a 1.72% drop in the past 24 hours, trading at $1,831.0. While this selloff is noteworthy, overall whale activity suggests some institutional confidence remains. In the last three weeks, ETH whales accumulated over $1 billion worth of ETH.
However, some technical indicators show potential weakness. A bearish divergence in the RSI suggests further price corrections are possible. Analysts predict a potential drop to the $1,400 range, although a rebound to $2,000 or even $4,000 is possible depending on market sentiment.
Vitalik Buterin's Ethereum Simplification Plan
Separately, Ethereum co-founder Vitalik Buterin proposed a significant overhaul of Ethereum's architecture. He aims to simplify the network to make it more user-friendly and less complex than the current system. This initiative seeks to address high development costs and security risks, possibly involving shifting to 3-slot finality and replacing the Ethereum Virtual Machine (EVM).
While the immediate price impact is unclear, this simplification could lead to long-term benefits and increased trust in the Ethereum ecosystem.
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