Ancient Ethereum whale resurfaces: What’s going on?
- The whale transfer did not cause a heavy dump on ETH.
- ETH had a more bullish tendency than bearish.
An Ethereum [ETH] address, which was in existence since its initial coin offering (ICO) back in 2017, moved $15.3 million worth of the altcoin lately. According to the tweet shared by EmberCN, the ICO address’s last selling period was in the same year. During this time, the whale moved 36,000 ETH into the Kraken exchange.
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Usually, sudden increases in dormant wallet activity end in some selling. However, it was unclear if this transfer means that the ETH whale would take the same action as in 2017.
With speculation about the intention behind the activity, ETH could still maintain a price above $1,800. Also, the 90-day dormant circulation, which spiked as of 21 June, had reduced to 28,700 at press time.
This decrease shows that only a few long-term holders have been involved in transfers lately. So, the selling pressure on ETH might not necessarily be significant.
But ETH’s exchange inflow at the time of writing had skyrocketed. According to Santiment, the metric was up to 114,000. Used to measure the total transfer of assets into centralized wallets, a high exchange inflow suggests an increased motive to take profits or let go of some coins.
A fall is not impeding
As per the price action, the Moving Average Convergence Divergence (MACD) showed that ETH could continue its upward momentum.
From the indicator, the blue dynamic line was above the orange dynamic line. This suggested that buyers were still dominant in the market.
Also, the positive reading inferred that it might not be profitable for traders to take short positions in the meantime.
Furthermore, the Directional Movement Index (DMI) aligned with the position displayed by the MACD. In this indicator, the +DMI (green) was above the -DMI (red) at 26.97 to 16.21.
Additionally, the Average Directional Index (ADX) was above 25. When the ADX (yellow) is above the said value, then it meant that there was solid directional strength behind the price action.
If it was the opposite, then it would mean that ETH would have the tendency to fall lower than its press time price.
How much are 1,10,100 ETHs worth today?
While the Ethereum ICO address may hold a significant amount of ETH, the motivations and actions of address holders can vary.
In conclusion, the decision to take profits or any investment activity can be highly subjective. As of this writing, the motive to sell by the ETH whale was only speculation.