A dormant Ethereum (ETH) wallet containing thousands of coins collected during the network’s token creation event has been awakened after nearly three years.
According to Lookonchain dataOn November 24, approximately $42.4 million worth of ETH was moved, with 10 ETH deposited directly into the cryptocurrency exchange Kraken.
The Ethereum Whale Awakens
On-chain data shows that the dormant wallet first collected 100,000 ETH, worth about $31,000, during the 2014 Ethereum initial token offering (ICO).
The coin was then minted at $0.31. Over the years, the price of ETH continued to rise, reaching an all-time high in 2021.
Notably, the whale last moved its coins in 2020, despite being one of the original ETH holders. Amazingly, this address wasn’t even cashed out throughout the 2021 bull market, when prices soared to $4,800.
In September 2020, the wallet transferred 0.70 ETH. However, before that, in 2019, a total of 40,000 ETH, data from Etherscan, was moved to that address. Open to the public.
Typically, whenever a whale moves a significant amount of coins to a centralized cryptocurrency exchange like Kraken, it could imply that the owner wants to liquidate them and cash them out for fiat or another digital asset like Bitcoin (BTC).
Therefore, cryptocurrency traders typically interpret these trades as bearish and can influence overall market sentiment.
ETH Bulls Firm, Price Uptrend
Although overly negative, looking at the amount transferred to Kraken, it seems likely that ETH bulls and traders will remain optimistic overall.
Only 10 ETH was transferred to the exchange, not 20,000 ETH. Sales availability has not yet been confirmed.
Coins may be sold, but ETH or any other large asset held on an exchange does not guarantee intent to sell. In some cases, the current situation may allow whales to forge a liquidity path if a favorable exit opportunity presents itself.
Additionally, whales and institutions often diversify their assets across verified platforms, including custodians and trusted and regulated exchanges, as part of risk management.
The current Ethereum price continues to rise higher at the time of writing. The coin is trading above $2,000 but is relatively volatile. In particular, buyers should still build on the gains from November 9 by reading price action on the daily charts.
Overall, a confirmed bull run on November 9th, pushing the price above $2,100 and subsequent new 2023 highs, could push ETH higher in the coming days. Sustained ETH gains could lead ETH to reach its March 2022 high of around $3,500.
Featured image from Canva, chart from TradingView