50

In a concerning development for the Ethereum (ETH) market, a significant whale has just offloaded another 5,000 ETH. This particular whale, who originally acquired 1 million ETH during the Ethereum ICO at a mere $0.31 per ETH, has continued their aggressive selling spree. The news has rattled the crypto community, especially as ETH’s price has dropped over 4% in the last 24 hours, struggling to maintain the $2,500 level.

Ethereum ICO Whale Intensifies ETH Selloff

Today, the whale transferred another 5,000 ETH, worth approximately $13.2 million, to the OKX exchange. This is just the latest in a series of substantial ETH sales by this entity. Over the past month, they have deposited a total of 48,500 ETH, valued at $154 million, to the exchange.

This persistent selling activity has sparked widespread concern among Ethereum investors. The whale’s actions have been marked by an alarming increase in both the frequency and volume of ETH deposits. The selloff began on July 8, 2024, with a sale of 1,000 ETH. Since then, the amount has steadily increased, first to 1,500 ETH, then 2,000 ETH, followed by 2,200 ETH, and eventually reaching 2,800 ETH. Recently, the whale has made three consecutive deposits of 5,000 ETH each. This aggressive strategy has significantly impacted the market, with Ethereum’s price dropping over 4% to the $2,500 level today.

The community is now concerned about the potential for further sales by this whale, which could lead to more price declines. There is particular anxiety about the whale’s remaining stash of 951,500 ETH, valued at a staggering $2.41 billion at current prices. If this large amount of ETH were to be dumped on the market, it could severely destabilize the price.

ETH Heading for Further Decline?

Market watchers are now closely monitoring the bulls’ efforts to push the price back toward the $3,000 mark. However, technical indicators are signaling potential trouble ahead. A looming “death cross” between the 50-day and 200-day exponential moving averages (EMAs) suggests that selling pressure could increase in the coming days.

This pattern, typically associated with a bearish outlook, could potentially drive ETH’s price down to $1,830. Adding to the bearish sentiment, there has been a surge in Ethereum long liquidations. Long positions worth $33.28 million were liquidated, while short positions worth $11.88 million were also wiped out, highlighting the heightened risk of further downside movement.

On the other hand, Spot Ethereum ETFs saw a substantial inflow of $105 million last week, driven by optimism around their launch. However, the week ended on a mixed note, with three consecutive days of outflows. This has led analysts from QCP Capital to shift their focus to Bitcoin ETFs, signaling a more cautious approach to Ethereum.

ETH Linked to Plus Token Ponzi Scheme

Amid the Ethereum ICO whale’s ongoing selloff, recent ETH movements reportedly linked to the Chinese government have also sparked speculation. On August 8, wallets containing Ethereum seized from the Plus Token Ponzi scheme allegedly moved $2 billion worth of ETH.

An investigation by EmberCN revealed that a large amount of Ethereum, totaling 789,534 ETH, was transferred to the Bidesk exchange between June and September 2021. However, after Bidesk declared bankruptcy later that year, these assets were redirected to the Huobi exchange. Notably, 268,843 ETH were funneled into Bidesk through four specific deposit addresses.

Interestingly, some of these assets were never sent to Bidesk in 2021, while others were withdrawn but have yet to be transferred to Huobi. The investigation also uncovered that 12 addresses connected to the Plus Token Ponzi scheme received $63.1 million worth of ETH in last week’s transfer. On the same day, the Ethereum ICO whale dumped another 5,000 ETH.

EmberCN concluded that the Chinese government likely sold a significant portion of the 789,534 ETH in 2021. Therefore, the latest transfer of about $63 million in ETH is unlikely to cause substantial harm to the market. However, when combined with the massive long liquidations, the Ethereum ICO whale’s selloff, and the waning interest in ETH ETFs, the market remains on high alert.

 

What is an Ethereum (ETH) whale?

Ans : Ethereum whale refers to an individual or entity that holds a large amount of ETH. Their trades can significantly impact the market due to the sheer volume of ETH they control.

Why are Ethereum whales’ actions important?

Ans : Whales can influence the market price of ETH through large-scale transactions. If they sell large amounts of ETH, it can drive the price down, whereas buying large quantities can push the price up.

What was the Ethereum ICO, and why is it significant?

Ans : The Ethereum ICO (Initial Coin Offering) in 2014 was when ETH was first sold to the public at a price of around $0.31 per ETH. It’s significant because it marked the launch of the Ethereum network and distributed ETH to early investors, some of whom are now whales. 

How does a “death cross” affect Ethereum’s price?

Ans : A “death cross” occurs when a short-term moving average crosses below a long-term moving average. It’s generally seen as a bearish signal, indicating that the price may continue to decline.

What impact does the dumping of ETH by a whale have on the market?

Ans : When a whale dumps large amounts of ETH, it increases the supply on the market, which can drive the price down if there isn’t enough buying interest to absorb the excess supply.

What are long and short liquidations in the crypto market?

Ans : Long liquidations occur when the price drops and traders holding long positions (betting the price will go up) are forced to sell at a loss. Short liquidations happen when the price rises, and those holding short positions (betting the price will go down) are forced to buy at a loss.

What is the significance of Ethereum ETFs?

Ans : Ethereum ETFs (Exchange-Traded Funds) allow investors to gain exposure to ETH without directly buying the cryptocurrency. They can impact market sentiment and influence the price of ETH based on inflows and outflows.

What was the Plus Token Ponzi scheme, and how is it connected to Ethereum?

Ans : The Plus Token Ponzi scheme was a fraudulent investment scheme that collected large amounts of cryptocurrency, including ETH, from investors. The connection to Ethereum arises from the movement of ETH linked to this scheme, which can affect market prices if large amounts are sold.

What are the risks of holding ETH during periods of whale activity?

Ans : The main risk is price volatility. Whales can cause sudden and significant price drops by selling large amounts of ETH, leading to potential losses for smaller investors.

How can investors protect themselves from the impact of whale activity?

Ans : Investors can protect themselves by diversifying their portfolios, setting stop-loss orders to limit potential losses, and staying informed about market trends and whale activities to anticipate potential price movements.