Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

Ethereum: Are whales moving away from ETH?

2min Read

Amidst ETH selling by major holders, the market has maintained stability.

Share this article

  • Whales began to sell their ETH holdings.
  • Price remained the same, and institutions started to show interest in ETHE.

Ethereum [ETH] price has been soaring upward over the last few weeks. Due to this, many holders that got in early, could try to sell their holdings for a profit.

One major whale had already started selling off its holdings.

Profit taking season

The whale, proficient in the art of swing trading with Ethereum ETH, has recently initiated the selling of ETH. The whale has made a substantial deposit of 3,700 ETH (equivalent to $8.72 million) to the Binance platform.

At present, the whale holds a total of 10,000 ETH, amounting to $23.58 million in value.

The whale’s strategic selling of Ethereum could impact the market in both positive and negative ways. On the positive side, if the whale’s actions lead to increased liquidity and more balanced price levels, it could contribute to a healthier and more stable ETH market.

However, on the negative side, large transactions like these can also introduce volatility, potentially causing short-term price fluctuations and influencing investor sentiment.

The sell-offs were not isolated to one whale. Recent data showed that many top addresses on exchanges had seen a decline in their supply.

However, despite the whale sell-offs, the overall price momentum of ETH wasn’t affected. The price of ETH was $2,361.38, at the time of writing. Its price had grown by 0.41% in the last 24 hours.

Source: Santiment

Institutions remain keen

However, the Grayscale Ethereum Trust premium gap, previously at -59.49% in December 2022, narrowed due to institutional buying, positively impacting ETH’s trajectory.

The Grayscale Ethereum Trust premium gap refers to the difference between the market price of Ethereum (ETH) and the price at which the Grayscale Ethereum Trust (ETHE) shares are valued.

A negative premium indicates that ETHE shares are trading below the market value of ETH. In December 2022, the premium gap was at -59.49%, suggesting that ETHE shares were significantly undervalued compared to the actual price of ETH.


Realistic or not, here’s ETH’s market cap in BTC terms


The narrowing of this premium gap is attributed to institutional buying, which means that institutional investors were acquiring ETHE shares.

When institutions invest in trust products like Grayscale, it often reflects confidence in the underlying asset, in this case, Ethereum.

Source: Crypto Quant

 

Share

Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.