Ethereum Whale’s Selling Spree Impacts Market as Network Undergoes Changes

Ethereum Whale's Selling Spree Impacts Market as Network Undergoes Changes

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is experiencing significant shifts in its ecosystem. From large-scale sell-offs by early investors to network upgrades and changing market dynamics, the Ethereum landscape is evolving rapidly.

Early Investor Unloads Massive ETH Holdings

An Ethereum whale, who initially received 150,000 ETH through the project’s Initial Coin Offering (ICO), has resumed selling their holdings. Crypto analyst EmberCN reports that the whale recently moved 5,000 ETH, worth approximately $12.22 million, to the Kraken exchange.

This transfer is part of a larger selling spree that has seen the whale offload 45,000 ETH over the past two weeks, valued at about $113.2 million at an average price of $2,516 per ETH. The whale’s selling history reveals a pattern of strategic exits:

  • July 2019: Sold 5,000 ETH for $1.09 million ($218 per token)
  • June 2024: Liquidated 10,000 ETH for $35.39 million ($3,539 per token)
  • September-October 2024: Sold 45,000 ETH for $113.2 million ($2,516 average price)

Despite these substantial sales, the whale still holds 94,540 ETH, valued at approximately $230.3 million at current market prices. This remaining balance includes 4,540 ETH attributed to staking income earned through platforms like Lido and Rocket Pool.

Dencun Upgrade Impact and Market Performance

The recent Dencun upgrade has significantly impacted the Ethereum network, leading to record-low fees and a surge in Layer 2 (L2) transactions. This upgrade has also caused Ethereum to become inflationary, marking a shift from its recent deflationary trend.

Despite this change, Ethereum’s market performance remains bullish. At the time of writing, ETH was trading at $2,476.41, with a market capitalization exceeding $298 billion. This price increase has put more than 9 million Ethereum addresses in profit, accounting for over half of all Ethereum addresses.

On-chain data reveals a decreasing exchange reserve for Ethereum, indicating increased buying pressure and potentially signaling a bullish trend. However, technical analysis suggests a mixed outlook, with the daily chart showing resistance at the 20-day simple moving average (SMA) and the MACD indicating a bearish advantage.

Ethereum Maintains Dominance in Whitehat Hacker Ecosystem

Ethereum continues to be the preferred blockchain for crypto whitehat hackers, with 87% favoring it, according to a report by Immunefi. However, other blockchain networks like Polygon, Arbitrum, Optimism, and Solana are gaining traction.

The report highlights that improper input validation has become a major issue, rising from 9% to 47% of all vulnerabilities targeted by whitehat hackers. Meanwhile, reentrancy attacks have decreased from 43% in 2023 to 16% in 2024.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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