Ethereum is in the news again, but this time it’s not because of bullish sentiment, but because of a massive surge in whale activity that could mark a major sale. The two famous Ethereum owners were calculated in a few hours and probably made a game-changing decision.
Concerns were raised immediately when a wallet connected to the Ethereum Foundation sent Kraken 1,000 ETH, or about $1.58 million. Especially ten years ago, when ETH was valued at around $1.20, the foundation sent 84,513 ETH to this address. The substantial unrealized gains from this recent transaction could mark the beginning of a wave of long-term holders earning profits.
The investment company, Paradigm, has made an even more surprising move. Anchorage, a frequently used platform for facility asset management, received 5,500 ETH (~$8.66 million) from the paradigm about three hours before the foundation’s deal. With an average price of $3,110 year-over-year, the paradigm moved an astounding 96,955 ETH, which exceeded $303 million, to Anchorage.
Such actions have come historically before ETH moved to well-known exchanges such as Coinbase and Binance, suggesting potential liquidation plans. Ethereum recently showed a moderate recovery on its price list, rising above $1,620, up almost 2% that day.
However, this relief effort is still unstable. The fact that ETH is still below critical resistance levels near 50 EMA ($1,835) and well below long-term 200 EMA ($2,530) indicates that this trend is still bearish overall. The market has yet to develop strong directional beliefs, as evidenced by the lower volume, compared to previous breakouts and RSIs that hover with RSIs near neutral zones.
Signs of weakness can cause a chain reaction as key players increase sell-side pressure. If these ETH transfers lead to significant sales, Ethereum may see fresh downward pressure. Traders and investors will need to pay attention to them in the coming days as exchange inflows could be milder before the storm.
