TL;DR
- Massive eth Whale Movement: A dormant eth whale moved $90 million worth of eth to Kraken, indicating potential selling pressure in the market.
- Impact on the market: The transfer could affect the eth market by at least 2%, with implications for Kraken's trading depth and broader market dynamics.
- crypto Market Trends: The event aligns with increased whale activity and an uptrend in altcoins, indicating a possible change in market behavior.
Huge crypto Whale Wakes Up and Chooses Violence
The crypto community was alerted this week to a huge eth whale that has moved nearly $90 million in eth to Kraken, Lookonchain first reported.
What set off alarm bells is that the whale has remained dormant for at least five years and is most likely looking to sell off, which could put significant downward pressure on the second-largest crypto asset, which recently tested $2.2 thousand.
Lookonchain said the whale deposited 39,260 ether into Kraken during the Asian morning hours. The address previously received 47,260 ether in a single transaction in 2017, valued at more than $11 million.
One of the first $eth Whale appears to be selling eth again after being dormant for 5 years.
The whale deposited the 39,260 $eth($87.5 million) #kraken 30 minutes ago.
The whale received 47,260 $eth($11.34 million) to ~$240 from June to August 2017.
If sold, the whale would make a profit of ~$78 million. pic.twitter.com/v0PI4LNTKO
— Lookonchain (@lookonchain) December 5, 2023
Additionally, it does not appear that the address is linked to an exchange's cold storage. However, further analysis of Arkham suggests that one transaction could be related to a trading company called Cumberland, a crypto trading company and liquidity provider for institutional clients.
How much could this liquidation affect eth?
As of Tuesday morning, data indicates that Kraken's current market depth for eth trading pairs is over $5 million. If the whale executes a buy or sell order of this magnitude, it could impact the market by at least 2% in either direction.
Whale activity has increased significantly as the crypto market shows bullish signs. Aside from bitcoin, most altcoins have performed exceptionally well during the third quarter. Some of the most traded tokens in November were XRP, LINK, and SOL, which saw significant price increases that month as btc's dominance diminished.
While some whales might be turning a profit, others are positioning themselves for a potential altcoin season. As CryptoPotato reported, a popular crypto analyst has identified a Golden Cross, a bullish pattern that has historically coincided with altcoin rallies.
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