An Ethereum ICO investor sold 19,000 ETH ($47.54M), triggering concerns about potential impacts on ETH price.
ETH dropped 3.5% to $2,387.53 after the sale, amid broader market factors like ETF outflows and institutional inflows.
Reactivation of dormant whales, like a September 2024 move of 12,010 ETH, is affecting Ethereum’s price dynamics.
Lookonchain has reported that an Ethereum ICO investor has recently sold 19,000 ETH, equivalent to approximately $47.54 million, within a span of two days. This whale was originally given 150,000 ETH during the Ethereum Genesis block in 2015 in exchange for an initial investment of $46,500. Currently, their assets are worth $358 million.
https://twitter.com/WuBlockchain/status/1841661563134214427
This significant sale has triggered talks within the cryptocurrency community, prompting worries about the possible effects of these liquidations on ETH's price. The impact of early ICO participants on Ethereum's market is evident, and this new sale highlights their continued importance.
Recent Ethereum Price Decline
The movement made by the whale, as well as bigger market factors, have caused the price of ETH to drop. ETH is currently trading at $2,.53, down 3.5% in the past 24 hours. Analysts are keeping a careful eye on whether more sell-offs by this participant or other traders will result in further price shifts in the coming days.
Past ICO Participant Activities
In late September, another dormant Ethereum ICO participant moved 12,010 ETH, worth $31.6 million, to Kraken in four separate transactions. This participant also received 150,000 ETH at the time of Ethereum's Genesis block, initially valued at $46,500, now worth $394.5 million.
https://twitter.com/lookonchain/status/1841658980130816280
The reactivation of dormant whales is further complicating ETH’s market dynamics, as large-scale transfers often result in significant price fluctuations.
Broader Factors Impacting Ethereum’s Price
Ethereum’s price movements are also influenced by broader market factors, including activity in the spot ETF market. Recently, Grayscale’s Ethereum ETF reported a $36 million outflow on September 26, while BlackRock and Fidelity ETFs recorded inflows, reflecting mixed sentiment among institutional investors.
Furthermore, Ethereum's continuous network updates have both beneficial and adverse effects. The transition to Proof-of-Stake (PoS) has increased energy efficiency and scalability.
However, concerns over Maximal Extracted Value (MEV), a process allowing validators to reorder transactions for profit, continue to affect its decentralization efforts. MEV has been dubbed Ethereum’s invisible tax as it can negatively impact everyday users.
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