- Despite a small 1.36% increase in the last 24 hours, Ethereum’s price has fallen 10.43% over the past week.
- Large-scale ETH transfers hint at possible future sales, contributing to market volatility and investor uncertainty in Ethereum.
Ethereum (ETH), is encountering sustained difficulties as its price struggles to find a stable footing. Recently, significant transactions involving large sums of ETH being moved to major exchanges have exacerbated these challenges.
Two major transfers were detected by Whale Alert, a prominent cryptocurrency tracking service, which has raised concerns among investors and those closely monitoring the crypto market.
🚨 🚨 13,883 #ETH (32,616,837 USD) transferred from unknown wallet to #Coinbasehttps://t.co/d4qPR3Heka
— Whale Alert (@whale_alert) October 3, 2024
The value of this transaction was approximately $32.6 million at the time of the transfer. Soon after, a different investor moved 14,008 ETH to the same exchange, and this transfer was valued at about $33.39 million.
🚨 🚨 14,008 #ETH (33,397,859 USD) transferred from unknown wallet to #Coinbasehttps://t.co/gK2CCgzHRl
— Whale Alert (@whale_alert) October 4, 2024
Together, these transactions involved a total of 27,891 ETH, amounting to a combined value of around $66 million. Moves of this scale can increase selling pressure on the market as they might signal that large holders are preparing to sell, which could further lower the price.
As of the latest reports by ETHNews, ETH is trading at $2,381. Despite a slight increase of 1.36% in the past 24 hours, the price has declined by 10.43% over the last week. This decline is part of a broader trend where Ethereum has seen its value decrease, struggling to rally amidst various market pressures.
The trading volume of Ethereum has also seen a significant drop, decreasing by 24.93% in the same period, which points to a cautious approach from traders and a general bearish sentiment in the market.
This pattern of whale transactions and the resultant impact on Ethereum’s price is a critical issue for investors. Large transfers to exchanges typically suggest that these holders might be looking to sell off their holdings, creating an environment of uncertainty and potential volatility in the price of Ethereum.
Ongoing Sales Pressure from Early Ethereum ICO Participant
The wallet associated with these transactions has been identified by Nansen as belonging to an “active DEX trader.” Over time, this wallet has disposed of more than $34 million worth of Ethereum. It is estimated that the investor still holds over 100,000 ETH across various wallets, some of which are linked to intermediary addresses.
The #Ethereum ICO participant keeps selling $ETH!
He sold another 6,000 $ETH($14.11M) 45 minutes ago and has sold 40,000 $ETH($101M) at an average price of $2,525 since Sept 22!
He still holds 99.5K $ETH($238M).https://t.co/NA6nFmFsTL pic.twitter.com/UKfXPuCaZF
— Lookonchain (@lookonchain) October 4, 2024
The identity of this early investor remains unknown, as most early Ethereum ICO participants have chosen to remain anonymous. Ethereum’s initial fundraising event accepted Bitcoin, attracting a diverse group of investors, including those potentially capable of providing venture capital or liquidity. The volume of Ethereum sold by this investor recently exceeds the amounts typically seen in initial DEX offerings or similar fundraising events.
These sales have influenced Ethereum’s price, which has struggled to stay above $2,500, recently dropping to $2,433.46. Currently, Ethereum’s price is experiencing minimal fluctuations within a confined range. This selling activity has also impacted overall market sentiment, contributing to a cautious or bearish outlook among investors.
Additional transfers of Ethereum have been made to exchanges and market makers like Cumberland, suggesting a pattern of significant outflows indicative of selling. Despite this, the market continuously adapts, with other large-scale traders and investors potentially looking to capitalize on these movements.
Ethereum’s ICO was notably backed by major venture capital firms, with the public sale distributing 60 million tokens, 83.47% of which went to investors, and 16.53% reserved for the project’s founders and reserves.
The ICO attracted 28 venture capital backers, including prominent funds such as Pantera Capital and Andreessen Horowitz, though there is no direct connection between these funds and the recent large-scale seller.
