Dormant Ethereum addresses came to life in the final days to take advantage of the price surge that rocked the digital asset. The wallet, which had seen no activity for nearly a decade, made its first transaction after the price of ETH rose above $3,200. Considering that these investors have held for the past few years, are they ready to sell?
Dormant pre-mined Ethereum addresses are awakened
Whale Alert, an on-chain data tracking platform, reported that a dormant Ethereum address was awakened in the early hours of Tuesday. The address in question is a pre-mined address, meaning it existed before Ethereum was officially launched.
If you look at the on-chain address, you can see that the address received 238.75 ETH in block 0, which is the genesis block. Considering there was basically no value for ETH at the time, this was likely a test transaction at the time and was only worth $2 at launch.
💤 Dormant pre-mined address containing 238 #ETH (771,893 USD) active in 8.6 years! https://t.co/Py2J5EO1T8
— Whale Alert (@whale_alert) February 27, 2024
However, as the years passed, the value of ETH soared. With the price of Ethereum currently exceeding $3,200, the wallet holding value has risen to over $770,000 at the time of this writing. This price increase may have prompted wallet owners to re-enter the market.
The initial transaction of 1 ETH was first performed from this wallet to another “0x785c8E…3e77ED7c” and once that transaction was confirmed, the entire wallet balance was transferred to the same wallet. In total, the wallet was dormant for 8.6 years before being reactivated today.
Where did ETH end up?
For the investors behind this dormant address, the endgame appears to be a real sell, considering ETH’s final position. The new wallet “0x785c8E… After transferring the balance to “3e77ED7c”, I again made a test transaction of 1 ETH on Coinbase. The entire balance was then transferred to Coinbase and the new wallet was empty.
Considering that selling is the main reason investors send coins to centralized exchanges such as Coinbase, it is possible that this investor is aiming to sell coins. In such cases, the coin may have been sold for a long time at the time of this issuance.
However, considering that the balance of this address is less than $1 million, it is unlikely that even if the investor sells the coins, it will have a negative impact on the price of Ethereum. Even now, Ethereum continues to hold strong above $3,200 as the bulls dominate the market.
ETH price bounces above $3,200 | Source: ETHUSD on Tradingview.com
Featured image from Forkast News, chart from Tradingview.com