A dormant ethereum (eth) wallet containing thousands of coins collected during the network’s token generation event is awake after nearly three years.
According to Lookonchain dataOn November 24, approximately $42.4 million worth of eth was moved, of which 10 eth was directly deposited into Kraken, a crypto exchange.
The ethereum whale wakes up
On-chain data reveals that the dormant wallet first collected 100,000 eth during the 2014 ethereum initial token offering (ICO), worth around $31,000.
Back then, the currency was issued for $0.31. Over the years, eth prices have continued to rise and reached all-time highs in 2021.
Notably, despite being among the earliest holders of eth, the whale last moved coins in 2020. Surprisingly, the address did not even cash out during the 2021 bull run, when prices soared to $4,800.
In September 2020, the wallet transferred 0.70 eth. However, before that, in 2019, the address had moved a total of 40,000 eth, data from Etherscan. reveals.
Typically, whenever a whale moves a significant amount of coins to a centralized crypto exchange like Kraken, it could suggest that the owner wants to liquidate, cash out for fiat money, or even another digital asset like bitcoin (btc).
As such, such transfers are often interpreted by cryptocurrency traders as bearish and may affect overall market sentiment.
eth Bulls Firm, Prices Trend Up
While it is too negative, looking at the amount transferred to Kraken, eth bulls and traders across the board will likely remain optimistic.
Only 10 eth, not 20,000 eth, were transferred to the exchange. It is yet to be verified if they also sold.
Although the coin can be sold, eth, or any other large asset pool that hits an exchange, does not guarantee an intention to sell. In some cases, the whale, as it stands at the moment, could be establishing liquidity avenues in case favorable exit opportunities arise.
Additionally, whales and institutions frequently distribute their holdings among verified platforms, including trusted and regulated custodians and exchanges, as part of risk management.
For now, ethereum prices continue to inch higher as of writing. The coin is trading above $2,000 but remains relatively volatile. Notably, buyers still need to take advantage of the gains from November 9, based on the price action reading on the daily chart.
Overall, any confirmation of the Nov. 9 bullish engulfing bar, which pushed prices above $2,100 and subsequently saw new highs in 2023, could push eth higher in the coming days. Sustained eth gains may see eth reach March 2022 highs of around $3,500.
Featured image from Canva, TradingView chart
