A major Ethereum whale using the wallet address 0xf07 has sold off $35.4 million in Ethereum (ETH) over the past 48 hours. This significant transaction coincides with a notable decline in Ethereum’s price, dropping below the $3,500 threshold.
Prominent Ethereum whales are reducing their holdings
The crypto whale initially purchased 150,000 ETH during the Ethereum Initial Coin Offering (ICO) in 2015 at a price of $0.31 per token. Since then, Ethereum’s value has surged significantly, resulting in substantial returns on the initial investment.
Over the last two days, this investor deposited a total of 10,000 ETH, valued at $35.4 million, into the crypto exchange Kraken. The average transaction price was $3,543 per ETH. The latest transaction on Tuesday involved a deposit of 5,500 ETH to Kraken.
The recent actions by the Ethereum whale suggest a strategic move to capitalize on market conditions amid a downturn. On Tuesday, the crypto market experienced significant pressure, resulting in nearly $500 million in forced liquidations.
Ethereum bore the brunt of this downturn, with liquidations totaling $92.52 million. Bitcoin (BTC) and Dogecoin (DOGE) also faced substantial liquidations amounting to $73.26 million and $60.35 million, respectively.
Despite selling a substantial amount, the whale still retains a significant Ethereum holding. Specifically, 138,900 ETH is staked across eight different crypto wallets, valued at approximately $476 million. This indicates a continued confidence in Ethereum’s long-term potential despite reducing exposure.
Additionally, broader trends among Ethereum holders show a similar reduction pattern. Data from Glassnode reveals a notable decrease in the total supply of ETH that has remained dormant for five to seven years. This metric has declined by over 22%, dropping from 11.6 million ETH tokens in late February to the current 9.01 million ETH.
As these significant holders begin cashing out, it could indicate a shift in sentiment among seasoned investors, possibly seeking to capitalize on long-term gains or reacting to broader economic factors affecting crypto markets.
Despite this trend, some analysts maintain a bullish outlook on Ethereum. They highlight that the supply of ETH on centralized exchanges is at its lowest in eight years.
“Ethereum supply on exchanges is at an 8-year low. Meanwhile, institutional demand will be unlocked through the ETH ETF in July. You don’t need to have a degree to understand what is about to happen,” noted crypto investor Quinten.