Ethereum Whale Makes Significant Move: Market Implications and Recent Developments
In a notable development in the cryptocurrency world, a prominent Ethereum holder, known for their "diamond hands" investment strategy, has
In a notable development in the cryptocurrency world, a prominent Ethereum holder, known for their “diamond hands” investment strategy, has transferred 15,000 ETH (worth approximately $38 million) to Kraken, a major cryptocurrency exchange. This move has caught the attention of the crypto community, given the investor’s history of well-timed asset disposals preceding market downturns.
Whale’s Trading History
The blockchain analytics platform Lookonchain reported this transaction, highlighting the whale’s previous successful trades:
- July 25: Transferred 10,000 ETH ($34.2 million) before a 7.6% price drop
- August 20: Deposited 15,000 ETH ($39.7 million) just before a 2.5% decrease in Ethereum’s price
After these transactions, the whale still holds 26,639 ETH, valued at around $69.7 million. Their Ethereum portfolio has generated an estimated profit of $132 million, representing an impressive 86% return on investment.
Recent Market Performance
Ethereum has shown robust performance over the past week, coinciding with the U.S. Federal Reserve’s announcement of a significant interest rate cut. Contrary to expectations of a 25 basis point reduction, the Fed implemented a more aggressive 50 basis point cut. Following this news, Ethereum’s value increased by 6.39% over the week.
The cryptocurrency’s upward trajectory began last Tuesday, reaching a peak of $2,632 by Sunday. However, it faced resistance at this level and has since experienced a minor decline of 0.02% in the last 24 hours, trading at $2,565 at the time of writing.
Long-Term Investment Success Story
In a related development, Lookonchain reported on another long-term Ethereum investor who recently realized a profit of $131.72 million after holding their Ether for two years. This individual purchased 96,639 ETH from Coinbase in September 2022, when Ether was trading at approximately $1,567, for a total investment of around $151.43 million.
At the beginning of this year, the investor transferred over 72% of their initial investment (70,000 ETH) to the Kraken exchange, with Ether’s market price having risen to $3,062, making the transfer worth approximately $214.34 million.
Market Outlook
These movements highlight the complex interplay between large-scale asset transfers by significant holders and broader market trends. As large holders like the “diamond hand” whale continue to make strategic moves, their actions are closely watched for indications of market sentiment and potential shifts in cryptocurrency valuation.
The slight downturn in Ethereum’s price after reaching its peak reflects a period of profit-taking following the cryptocurrency’s sharp ascent, driven by investor reactions to macroeconomic indicators and market liquidity.
ETH/USD Technical Analysis
Recent price action suggests that Ethereum is in a bullish trend, with the cryptocurrency showing strong momentum above key resistance levels. Here’s a detailed technical breakdown:
Ethereum has started a fresh upward move, breaking above the $2,500 resistance level. The price is currently trading above $2,550 and the 100-hourly Simple Moving Average, indicating strong bullish sentiment. ETH has surpassed the 76.4% Fibonacci retracement level of the recent downward correction from $2,633 to $2,528.
Support and Resistance
A key bullish trend line is forming with support at $2,550 on the hourly chart of ETH/USD. The first major resistance is observed near the $2,650 level, which coincides with the 1.236 Fibonacci extension level of the recent correction.
If Ethereum breaks above $2,650, the next key resistance levels are at $2,680 and $2,720. A successful break above $2,720 could potentially push ETH towards the $2,800 resistance zone, with the next hurdle around $2,880 to $2,920.
Potential Downside Scenario
If Ethereum fails to clear the $2,650 resistance, it might initiate a downside correction. Initial support is expected near $2,590.
The first major support level is at $2,550, coinciding with the trend line. A break below $2,550 could lead to a test of the $2,525 level, with the next significant support at $2,450.
Technical Indicators
- The hourly MACD for ETH/USD is gaining momentum in the bullish zone.
- The hourly RSI for ETH/USD is currently above the 50 level, indicating positive momentum.
Key Levels to Watch
- Major Support Level: $2,525
- Major Resistance Level: $2,650
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals