Large-scale whale transactions in blockchain-based projects often trigger significant market fluctuations. Recently, two major whale movements involving Illuvium (ILV) and Ethereum (ETH) have caused considerable price drops in these altcoins. Following these transactions, ILV saw a sharp decline, while the Ethereum Foundation’s sales also sparked notable volatility in ETH prices.
Whale Movement Affects Illuvium’s Price
In the past few days, Illuvium’s native token ILV experienced a price drop of more than 7% following a whale transaction. According to TradingView data, ILV’s price plummeted from $40.25 to $37.14 within minutes, marking a 7.7% decline. This drop is believed to be directly linked to a whale transaction reported by the on-chain analysis platform Lookonchain. The whale, known as Luggis.eth, withdrew 70,764 ILV (roughly $2.86 million) and sold 40,000 ILV (about $1.54 million), causing short-term volatility in ILV prices.
luggis.eth withdrew 70,764 $ILV($2.86M) from #Illuvium and dumped 40,000 $ILV($1.54M) 45 mins ago, causing the price of $ILV to drop by ~7.8%.
luggis.eth still holds 221,046 $ILV($8.25M).https://t.co/HcnYOc5xcl pic.twitter.com/MH7Khygb2J
— Lookonchain (@lookonchain) September 23, 2024
Despite the recent sell-off, the whale still holds a significant amount of ILV. Etherscan data shows that the whale’s wallet contains 221,046 ILV, valued at approximately $8.2 million. The market is now watching closely to see if this whale or other large investors will take similar actions, as whale movements typically have a profound impact on the market. If more whales reduce their positions, ILV could face further fluctuations.
Interestingly, this is not the first time Luggis.eth has caused turbulence in ILV prices. In June, the same whale sold $2.72 million worth of ILV, resulting in a 5% price drop. These large sales raise questions about investor confidence in the project and continue to draw attention from market participants.
Ethereum Foundation’s ETH Sales Continue
In addition to the Illuvium whale transaction, the Ethereum Foundation’s recent sales have been a critical factor in the market. On September 23, on-chain data revealed that the foundation completed a sale via the CoW Protocol, offloading 200 ETH (worth around $530,000). While this did not immediately impact Ethereum’s price, the Foundation’s increasing sale activity has sparked concern among market participants.
The same day, the Ethereum Foundation sold another 100 ETH, valued at $264,500. In total, the foundation has sold 1,050 ETH in September, with a total value of $2.53 million. These sales occurred at prices ranging between $2,301 and $2,645.
Market Reactions to Ethereum Foundation’s Sales
The Ethereum Foundation’s ongoing sales trend has been viewed by some as a potential factor for creating downward pressure on Ethereum’s price. While it is not uncommon for projects to sell their own tokens, these actions can erode investor confidence and cause price volatility. However, with a project as established as Ethereum, the market impact is typically more limited and short-term.
As reported by The Bit Journal, these developments have raised questions about how the market will react to further large-scale transactions. Investors are keeping a close eye on both Illuvium and Ethereum, anticipating possible price movements in the near future.
