An altcoin whale that participated in Ethereum’s ICO in 2015 has become active again today. In the first transaction, he transferred his entire portfolio to Kraken. This transfer may herald a potential sale.
Early Ethereum investor prepares
According to Lookonchain’s report, a whale has become active again today, raising more than 61,000 ETH from Ethereum’s ICO in 2015. The early Ethereum investor, who has been dormant for 8 years, is probably preparing to sell. He made his first transfer with 61,216 ETH, which he sent to Kraken. This represents a potential sale of $116 million in fiat terms.
An Ethereum ICO participant woke up after 8 years of dormancy and deposited all 61,216 $ETH($116M) to #Kraken 2 hrs ago.
He received 61,216 $ETH($116M currently) at Ethereum Genesis, the ETH ICO price is ~$0.31.https://t.co/HLSXvqyBDb pic.twitter.com/YWVlIcxN99
— Lookonchain (@lookonchain) July 19, 2023
Will the altcoin whale sell?
The whale has two options. If he wants, he can instantly convert the ETHs he bought for $ 0.31 into cash for $ 115 million today. If he chooses to rely on Ethereum and staking, this time he will have $3.5 million in interest income every year.
The deposit of the ICO participant has the power to increase the selling pressure in the Ethereum market. This increased sales activity affects supply-demand dynamics. Therefore, it potentially leads to bearish price movements of ETH in the short term.
Despite the FUD caused by whale deposits, individual investors continued to show their faith in Ethereum. According to Glassnode, the number of non-zero addresses has recently reached the ATH level of 102,913,926. As the number of individual investors holding Ethereum grows, they are more likely to be vulnerable to whale behavior.
Will the bears be right?
The selling pressure on Ethereum was relatively low at this time. This comes with a relatively low MVRV rate. A low MVRV rate indicates that only a few ETH addresses are profitable at the moment and most of these addresses are unwilling to sell their holdings. Additionally, Ethereum’s high long/short spread implied that the number of long-term addresses outnumbered short-term holders. These addresses are less likely to sell their ETH.
According to Coinglass, despite these factors, the number of short positions taken against ETH has increased from 48% to 52.31% in the past few days. This increase in short positions may have been due to recent whale behavior.
These indicators suggest leading altcoin shorts
Bitcoin and Ethereum reported big gains on July 13. However, they could not hold the profits. While BTC showed some hope of a bounce, ETH’s price action hinted at more losses. The first indicator was a sudden retracement to a monthly range (yellow) seen in the chart below.
In addition to the idea of seller dominance, over the past three days, Ethereum bulls have been unable to hold the $120 mark. This was accompanied by a floating OBV, which indicated increasing selling pressure.
It has remained below the neutral 50 line since July 15 on the 2-hour chart on the RSI. Thus, it showed that the downtrend was dominant in the last days. As quoted by Kriptokoin.com, some analysts are predicting a potential bearish opportunity.
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