Ethereum Whales Stir Market: $21 Million Sold Pre-ETF Launch

Ethereum Whale Moves: $21 Million Sold Pre-ETF Launch, Market Reacts

Ethereum Whale Moves: A significant move in the cryptocurrency market occurred when a crypto whale wallet, known as 0x742, liquidated a substantial Ethereum position valued at approximately $21.43 million. This investor transferred 7,240 Ethereum (ETH) into the Kraken crypto exchange at a price of $2,960 per ETH.

Strategic Move Ahead of Ethereum ETF Launch

This transaction is particularly intriguing due to its timing, just before the anticipated launch of Ethereum-based ETFs. According to data from Spot On Chain, in December 2022, the same wallet had withdrawn 8,240 ETH from Kraken at a much lower price of $1,189 per ETH. This strategic hold resulted in a profit of roughly $12.83 million, marking a 149% gain over eighteen months.

Additional Ethereum Transfer

Besides the deposit of 7,240 ETH to Kraken, the whale also transferred an additional 1,000 ETH to an unidentified wallet. This divestment aligns with a surge of optimism about the pending approval and trading of Ethereum-based ETFs in the US. Analysts, including James Seyffart and Eric Balchunas from Bloomberg Intelligence, suggest these ETFs might start trading as soon as next week.

Analysts’ Predictions

Nate Geraci, president of the ETF Store, predicts that Ethereum ETFs could commence trading within the next two weeks, targeting around July 15. This prediction follows Bitwise’s updated S-1 filing last week. Geraci explains, “Most issuers (I believe all but Bitwise) still have to submit amendments on Monday. The final S-1 will then be submitted after that, which needs to happen by Wednesday as I assume issuers don’t want a Friday launch. I think this is unlikely, so I move the timeline to July 15.”

Market Implications

Notably, crypto whales like 0x742 exiting positions ahead of these developments typically deposit assets into centralized exchanges when they plan to sell and withdraw them to private wallets for long-term holdings. Therefore, this move might indicate skepticism about Ethereum’s near-term market prospects despite the positive outlook for ETFs. It might also suggest a reactionary sale after Ethereum hit a low of $2,800 last week.

Ethereum’s Price Action

Ethereum’s price action has been volatile recently, with a notable dip of about 23% from its peak after preliminary ETF approval news. However, it has shown signs of recovery, forming a double bottom pattern, which suggests potential upward movement. If Ethereum can break through the resistance at $3,080, it could climb to $3,350. Conversely, failing to break this resistance might lead to price consolidation in the range of $2,876 to $3,080.

Conclusion

The recent movements by crypto whales, particularly 0x742, highlight the market’s anticipation and uncertainty surrounding the upcoming Ethereum ETF launches. Investors and traders will be closely monitoring these developments and their impact on Ethereum’s market dynamics.

FAQ: Ethereum and Crypto Whale Activity

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