Ethereum Sell-Off: Crypto Whale Dumps $35.4 Million as ETH Price Tumbles

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A prominent Ethereum whale with the wallet address 0xf07 has offloaded $35.4 million worth of Ethereum (ETH) over the last two days. This transaction comes at a critical time when Ethereum’s price has sharply declined, falling below the $3,500 mark.

Meanwhile, many other long-term holders have started reducing their Ethereum exposure.

Ethereum Whales Decrease Their Holdings

Originally, the crypto whale acquired ETH during the Ethereum Initial Coin Offering (ICO) in 2015, purchasing 150,000 ETH at just $0.31 per token. Since that time, the value of Ethereum has dramatically increased, yielding substantial returns on the initial investment.

In the past two days, this investor deposited a total of 10,000 ETH, worth $35.4 million, to the crypto exchange Kraken, with the average transaction price at $3,543 per ETH. The most recent transaction included a deposit of 5,500 ETH to Kraken on Tuesday.

“The ETH price dropped abruptly after the whale’s latest deposit to below $3,500,” Spot On Chain said.

The timing suggests a well-calculated decision to maximize returns as market conditions started to deteriorate. On Tuesday, the crypto market faced significant pressure, with nearly $500 million wiped off due to forced liquidations.

Ethereum faced the most severe impact, with liquidations totaling $92.52 million. Subsequently, Bitcoin (BTC) and Dogecoin (DOGE) experienced liquidations of $73.26 million and $60.35 million, respectively.

Despite this large-scale sell-off, the whale still holds a significant amount of Ethereum. Specifically, 138,900 ETH is staked across eight different crypto wallets, valued at approximately $476 million. This indicates that while the investor has reduced his exposure, he remain substantially invested in Ethereum’s long-term potential.

Moreover, a broader trend among Ethereum holders indicates a similar pattern of reduction. Data from the on-chain analysis platform Glassnode reveals a noticeable decrease in the total supply of ETH that had remained unmoved for five to seven years. This metric has decreased by over 22%, dropping from 11.6 million ETH tokens in late February to the current 9.01 million ETH.

Ethereum Total Supply Unmoved Since Five to Seven Years. Source: Glassnode

Consequently, as these significant holders begin to cash out, it may signal a shift in sentiment among seasoned investors. They are possibly looking to capitalize on the gains achieved over the years or are reacting to broader economic factors impacting the crypto markets.

However, some analyst also share bullish stance regarding Ethereum. This is because the supply of ETH in centralized exchanges has been lowest since the past eight years.

“Ethereum supply on exchanges is at an 8-year low. Meanwhile institutional demand will be unlocked through the ETH ETF in July. You don’t need to have a degree to understand what is about to happen,” crypto investor Quinten said.

by beincrypto