As Ethereum grapples with a significant dip in price, fear, uncertainty, and doubt (FUD) are creeping back into the market. Recent activity from a long-dormant Ethereum whale has raised eyebrows, as this ICO participant has begun offloading large quantities of Ether (ETH) accrued since the blockchain’s initial coin offering in 2014.
On October 3, transaction analytics platform Lookonchain revealed that the entity had sold a staggering 19,000 ETH over the past two days, valued at approximately $47.5 million. This sell-off follows a trend that started in late September, during which more than 12,000 ETH (worth around $31.6 million at the time) was transferred to the Kraken exchange. This particular whale, having amassed 150,000 ETH during the ICO, saw their initial investment of roughly $46,500 balloon to nearly $400 million in current valuations.
The timing of this sell-off has proven detrimental to Ether’s price, which has plummeted nearly 10% since the beginning of October. From a trading price of $2,650 on October 1, ETH has fallen to an intraday low of $2,365 by October 3—a 3.7% decline on the day alone, surpassing the broader cryptocurrency market’s 2.6% drop in market cap. Additionally, the ETH/BTC ratio has slipped back to 0.039, a level not seen since the market’s slump in mid-September.
This sell-off has sparked renewed criticism of Ethereum, with many observers expressing skepticism about the asset’s future. Prominent crypto trader “Bluntz” lamented, “Yikes, even day zero ETH OG’s are jumping ship,” reflecting the growing anxiety among investors. Solana maximalist “Cozy The Caller” echoed these sentiments, stating, “Ethereum is doing nothing these days but dragging crypto even lower.”
Despite the rising chorus of FUD, many within the Ethereum community remain steadfast in their support of the network. Educator Anthony Sassano countered the negative narrative, asserting that “the FUD is never-ending, and most people in this industry don’t actually care about the truth.” Furthermore, Ryan Sean Adams from Bankless highlighted that Ethereum has generated over $140 million in gross profits across nine chains in the past year, emphasizing the network’s continued resilience.
Also Read: Solana Surpasses Ethereum – $9.1B In Weekly DEX Volume vs. $9.09B—The DeFi Flippening!
In a glimmer of hope, institutional investors appear to be regaining interest in Ethereum. On October 2, nine spot Ether ETFs recorded an inflow of nearly $20 million, primarily driven by investment giant BlackRock. This marked the largest inflow in a week and occurred just one day after the funds experienced their most significant outflow since launching. In contrast, spot Bitcoin ETFs faced their second consecutive day of outflows, totaling $53 million.
As Ethereum navigates this turbulent landscape, the resilience of its community and the renewed interest from institutional players may play crucial roles in countering the pervasive FUD. With planned network upgrades and ongoing innovations, the Ethereum ecosystem may yet find its footing amidst the uncertainties that continue to surround it.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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