A famous Ethereum whale with wallet address 0xf07 offloaded $35.4 million worth of Ethereum (ETH) over the past two days. This transaction occurred at a critical time when the price of Ethereum was plummeting, falling below $3,500.
Meanwhile, many other long-term holders have started reducing their Ethereum exposure.
Ethereum whale holdings decrease
Originally, the cryptocurrency whale acquired Ethereum by purchasing 150,000 Ethereum at $0.31 per token during Ethereum's initial coin offering (ICO) in 2015. Since then , the value of Ethereum has risen rapidly, giving you a significant return on your initial investment.
Over the past two days, the investor has deposited a total of 10,000 ETH (worth $35.4 million) on cryptocurrency exchange Kraken , with an average trading price of $3,543 per ETH. The most recent transaction was a deposit of 5,500 ETH to Kraken on Tuesday.
Read more: Ethereum (ETH) price prediction 2024/2025/2030
“Following the whale’s latest deposit, the price of Ethereum has fallen sharply below $3,500,” Spot on Chain said .
This suggests that this was a well-calculated decision to maximize profits as market conditions began to deteriorate. On Tuesday, the cryptocurrency market faced significant pressure, with nearly $ 500 million wiped out in forced liquidations .
Ethereum was most severely affected, with a total of $92.52 million in liquidations. Next, Bitcoin (BTC) and Dogecoin (DOGE ) experienced liquidation of $73.26 million and $60.35 million, respectively.
Despite this massive sell-off, whales still hold significant amounts of Ethereum. Specifically, there are 138,900 Ethereum deposited in eight cryptocurrency wallets, equivalent to approximately $476 million. This indicates that investors have reduced their exposure but are still heavily invested in Ethereum’s long-term potential.
Additionally, the broader trend of Ethereum holders is showing a similar pattern of decline. Data from on-chain analytics platform Glassnode shows that the total supply of Ethereum, which has not moved for five to seven years, has decreased significantly. This indicator has decreased by more than 22%, from 11.6 million ETH tokens at the end of February to 9.01 million ETH today.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
As a result, the sentiment of seasoned investors may change as these major holders begin to cash out. They are likely capitalizing on gains made over the past few years or reacting to broader economic factors affecting the cryptocurrency market.
However, some analysts are optimistic about Ethereum. This is because Ethereum supply on centralized exchanges has hit its lowest level in eight years.
“Ethereum supply on exchanges is at its lowest level in eight years. Meanwhile, institutional demand is scheduled to be unlocked through the ETH ETF in July. You don’t need a degree to understand what’s going on,” said Quinten, a cryptocurrency investor.
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