Some Ethereum (ETH) high-conviction investors have been signaling pessimism about the project’s future by offloading relevant long-term positions. Overall, two accounts have recently sold more than 45,000 ETH, worth approximately $110 million at current prices.
In crypto, we can spot high-conviction, long-term investors in a few different ways. Addresses that somehow lock their coins, for example, through staking; and ancient dormant whales, are two of them.
While these actions could signal optimism and a potential buying opportunity, the opposite remains true. Market participants usually follow long-term dormant whales or large staking positions looking for a sell signal when they move.
Finbold previously reported two relevant movements in August, one from the Ethereum Foundation and the other from Vitalik Buterin. Both selling activities raised concerns and turmoil in the market, with $100 million and $10 million worth of transactions, respectively.
Ethereum ICO-age address offloads a massive position
First, an ancient whale address from Ethereum’s Initial Coin Offering (ICO) age turned active after two years of dormancy. Essentially, the address in question deposited 40,000 ETH in multiple transactions to Kraken since September 22, according to Lookonchain.
After the continuous sales, there are still 99,500 ETH left unsold, worth $238 million. Notably, the participant received 150,000 ETH at an ICO cost of $46,500, now worth $394.5 million.
If selling at each deposit time, the ICO-age whale sold around $101 million at an average price of $2,525. The most recent sale was of 6,000, worth $14.11 million.
ICO-age whale address. Source: Etherscan / Lookonchain
Staking withdrawal and a bearish sell signal
Similarly, an Ethereum whale has unstaked 17,135 ETH and sold 16,750 ETH of it since March 12. From March to date, Ethereum and most cryptocurrencies have been experiencing a nearly seven-month downtrend caused by significant selling pressures.
The most recent sell-off happened on October 3, with the whale offloading $11.74 million worth of 5,000 ETH.
When an investor locks up his tokens through staking, the message is a mid to long-term optimism over the cryptocurrency. This is because, by staking, the investors momentarily lose liquidity for immediate sales, adding opportunity cost to the equation.
Moreover, it can also signal the intention to contribute and support the chain’s decentralization and security, besides earning the yield.
Therefore, withdrawing from staking and depositing into centralized exchanges is a relevant sentiment shift, acting as a broader sell signal. Whales can easily influence the market’s direction either psychologically or through supply pressure, making these movements worth monitoring.
