$10 Million of Ethereum ICO Coins Moved to Kraken: ETH Market Ready to Dump?

Key Takeaways

• A major Ethereum whale transferred nearly $10M worth of ETH to Kraken.
• The wallet’s current ETH stash is worth approximately $466 million.
• The whale originally received 254,908 ETH in 2014 during Ethereum’s early days when each coin was valued at $40.

A sizable number of cryptocurrency assets have been transferred to the cryptocurrency trading site Kraken by one of the largest ETH whales.

The whale bought 254,908 ETH at Ethereum’s 2014 initial coin offering (ICO), when the second-largest cryptocurrency asset was only worth $0.31.

Since ETH is currently trading  at $1,632, the value of the cache of 6,000 ETH increased by an astounding 531,360% while it was in the whale’s care for nine years.

Accumulating Over $80M in ETH at Cost of $2.80

According to blockchain-tracking firm Etherscan , the wealthy investor spent $2.80 to complete the hefty ETH deposit.

As per Etherscan data , the whale still owns more than 49,070 ETH, which is equivalent to $80.7 million.

The wallet has repeatedly received tiny amounts of Ethereum over the last nine years, indicating possible dusting attacks. In these attacks, scammers and hackers send small cryptocurrency amounts (known as “dust”) to numerous wallets, aiming to compromise the privacy of the wallet owners.

According to the crypto analytics firm Santiment , significant Ethereum holdings behaved bearishly in the second and third quarters of this year.

The company explained  that the price of ETH is currently around one-third of what it was 22 months ago, however, following a sharp decline and the slaughter that was 2022 (in particular).

The project garnered media attention around a year ago during the highly anticipated merger, which successfully achieved reduced energy consumption and improved scalability.

However, due to the asset’s lack of significant price movement, traders have gradually lost interest in it over the past year, in contrast to other major cryptocurrencies.

Hope At The End Of the Road

Santiment remains optimistic about the project’s viability despite its current value. However, the metrics show a significant decline in utility for Vitalik Buterin’s initiative, with both on-chain transaction activity and trade volume sharply decreasing since their peak in early November last year.

According to the Santiment’s report , all of this is a sign of the audience simply losing interest at a time when many traders are unsure whether the $1,650 price level is overvalued or undervalued, however, it is not necessarily a warning sign for any asset.

If ETH drops to such a low level, we’ve seen significant psychological support around the $1,500 mark. Therefore, if and when this scenario unfolds, expect a notable increase in trading volume.

Monitoring the behavior of significant players, both whales and the general crowd, is crucial. We’ve seen a supply dump lasting about four months from addresses holding 10 to 10,000 ETH.

These prominent investors did accumulate significantly towards the end of last year. However, once the price reached a one-year high of around $2,120, they began taking profits rapidly.

The ongoing decrease in the Ethereum supply held by large investors, such as whales and sharks, is a trend worth watching. While price increases may still occur as these investors cash in, their actions don’t necessarily indicate an immediate return to the $2,000+ range.

Lastly, for those concerned about Ethereum’s role in the broader cryptocurrency ecosystem, it’s important to note that the development activity led by the ETH team remains robust and active, concludes  Santiment.