The price of Ethereum surged again to $4,000, which cannot be a coincidence. Just 6 hours before the price surged, two multi-signature wallets with a common creator address withdrew their first ETH and staked it. Perhaps some new institutions are starting to accumulate Ethereum. Their unrealized profits grew to $517,754 and then fell back to $157,570 as the ETH price dropped to $3,930.
Decompose
Two multi-signature wallets 0x23a…dad and 0xc9c…d04 withdrew a total of 4,502 ETH from Binance, worth $17.54. This is the first withdrawal for these two wallets. Interestingly, both multi-signature wallets share a common creator wallet 0x7cf…617. The withdrawals were executed between the ETH price of $3,880 and $3,900. These tokens were subsequently staked to KelpDAO.
From the amounts and timing of these transactions, it seems that these actions belong to an institution. It perfectly captured the trend of Ethereum, as just 6 hours later, the token reached $4,022. The value of staked tokens increased by 3%, generating $517,000 in unrealized profits. One point to remember is that multi-signature wallets are typically used by institutions.
Mysterious institution
It is unclear whether this is an institution or a new fund. The wallet has no historical records, making it impossible to track. There are many possibilities.
These addresses may belong to a new fund, a DAO, or even a large investor testing the waters. One of the multi-signature wallets has a history of 4 days, while another was created just 15 hours ago. Even their creator's wallet was created 51 days ago.
Correlation with ETH price trend
The most interesting part of these transactions is their timing. Were these transactions based on some analysis, as their timing aligns perfectly with Ethereum's recovery to $4,000? Or vice versa? Did these transactions instill confidence in the market, thus pushing up the price? Whether this is a coincidence or a direct influence, it clearly indicates that the market is sensitive to significant trades.
Market trends
At the time of writing, the trading price of Ethereum is $3,930, down 0.28% in the last 24 hours. Before the drop, the token had risen 2.06% to $4,022. The price faces high resistance, and the moving average is the first line of support around $3,940. The RSI follows the price trend and has dropped to 53.19, remaining stable. Currently, there is no reason for the market to decline. An 11.26% increase in trading volume indicates that traders are showing interest.
What are the expectations?
Over time, we may discover who is behind this significant Ethereum transaction, but it is certain that, following Bitcoin, institutions are also showing interest in ETH. The price stabilizes around $4,000. Wallets staking ETH at this price level indicate that large investors are confident in cryptocurrencies. We are unsure whether this is an institution, a new fund, a DAO, or a new major player entering the market. What do you think? Please let us know.
