ethereum price has seen a notable drop following a major Ether sell-off this week. The unexpected decline has left the crypto community anxious about the stability of the world’s second-largest cryptocurrency and the long-term effects of the drop.
ethereum Price Drops After Large-Scale Ether Swap
On Monday, October 9, the price of ethereum fell following an extensive Ether exchange by the ethereum-foundation-treasury/” rel=”nofollow”>ethereum Foundationa nonprofit community organization dedicated to enabling better human coordination.
The Ether transaction that took place on Uniswap, a decentralized crypto exchange platform, saw the price of eth fall 5% from its daily high of $1,635 to a local low of $1,553 before recovering once again.
According arkham dataThe ethereum Foundation exchanged approximately 1,700 eth worth $2.7 million into a single wallet address containing nearly $400,000 worth of cryptocurrency and was named “Grant Provider” by Etherscan.
The ethereum Foundation has not revealed the specific intentions behind the large-scale exchange. However, the ethereum Foundation, an organization that occupies a position of considerable influence, regularly exchange large amounts of tokens to finance its operations.
Currently, ethereum is trading at a price of 1589.36 after recovering from the initial drop. The sharp drop has left the crypto community concerned about the health of the cryptocurrency and whether the price of ethereum will recover.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/10/Heres-why-Ethereum-price-fell-towards-1500" alt="Tradingview.com ethereum Price Chart” width=”2804″ height=”1746″ loading=”lazy”/>
eth price recovers after 5% decline | Source: ETHUSD on Tradingview.com
eth whales dump $8.5 billion
The ethereum Foundation hasn’t been the only big wallet to sell off in recent times, as other eth whales have taken advantage of the altcoin’s price. According to crypto analyst Ali Charts on dumped a whopping $8.5 billion in tokens.
This big sale started in February of this year and continued until October. As a result, the sale of whales has spread for more than 5 million eth sold and redistributed during this 8 month period. The analyst also notes that “this selling trend continues with no current indications of a shift towards #eth accumulation yet.”
<img decoding="async" class="size-medium wp-image-554830 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=460&resize=460%2C218″ alt=”ethereum Price Whales” width=”460″ height=”218″ srcset=”https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=2862 2862w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=460&resize=460%2C218 460w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-price-whales.jpeg?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
eth whales dump 5 million tokens | Source: X
Compared to its all-time high of $4,891.70 in 2021, the eth price has fallen by more than half and has been struggling to regain the $2,000 mark. However, this could present a unique buying opportunity for investors who could see the price drop due to eth being discounted.
However, ethereum continues to maintain its position as the second largest cryptocurrency on the market with a market capitalization of $191.5 billion at the time of writing. Over the past day, the altcoin also saw some recovery, rising to $1,593 as the bulls prepare to retest the $1,600 resistance.
Featured image from Techopedia, chart from Tradingview.com
