The Ethereum(ETH)market has been under significant selling pressure in recent days, with its price dropping below $3,400. This comes amidst news of early ICO participants, often referred to as “whales” due to their large holdings, liquidating their positions.
On-chain data provider SpotOnChain revealed that a whale from Ethereum’s 2015 ICO recently moved 10,000 ETH (worth $35.4 million) to the Kraken exchange. This follows an earlier deposit of 5,500 ETH ($19.3 million) to the same exchange.
These transactions come despite the incredibly low purchase price these whales enjoyed. Having bought in at the ICO price of $0.31 per ETH in 2015, the whale in question originally acquired a massive 150,000 ETH for a total investment of just $46,600. Even after these recent sales, this whale still holds a significant 139,000 ETH, valued at a staggering $476 million across three wallets.
While the price decline may worry some investors, on-chain data suggests there could be light at the end of the tunnel for Ethereum. Exchange withdrawals have seen a dramatic rise, with a massive 4.1 million ETH leaving exchanges in the last ten days. This has driven the supply of ETH on centralized exchanges down to just 10% of the total supply, the lowest level since 2016. This suggests a potential decrease in selling pressure and increased hodling behavior among investors.
Also Read: Ethereum Price Swings Below $3,500 As Spot ETF Launch Looms In 2 Weeks: Will History Repeat?
Furthermore, the upcoming launch of a spot Ethereum ETF in July could bring a significant influx of capital to the market. Analyst Eric Balchunas of Bloomberg expects the ETF to be available for trading by July 2nd. This event, coupled with the positive on-chain data, could lead to a reversal of the current downtrend and a renewed upward rally for Ethereum.
While the recent selling from ICO whales has caused a temporary price dip, it’s important to consider the context. These investors are simply taking profits on an incredibly successful investment. The strong on-chain fundamentals and the upcoming ETF launch suggest that this could be a buying opportunity for long-term believers in Ethereum’s potential.
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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