A top cryptocurrency, Ethereum, faced substantial selling pressure, leading to a 5% drop below the $3,400 mark, now trading at $3,438 with a $420 billion market cap.
SpotOnChain, an on-chain data provider, revealed significant activity from an early Ethereum ICO participant who deposited 5.5K ETH, valued at $19.3 million, onto the Kraken exchange just before the price decline.
Interestingly, over the past two days, the same entity transferred a total of 10K ETH, worth $35.4 million, to Kraken. This action is significant considering that the whale initially acquired 150K ETH in 2015 for a mere $46.6K investment, showcasing the immense value appreciation of Ethereum over the years.
Despite recent transfers, the whale still retains 139K ETH across three wallets, valued at $476 million. The downside pressure on ETH’s price, however, appears limited. Ethereum has faced challenges breaching the $4,000 resistance level, leading to a 15% correction in June.
Nevertheless, on-chain metrics portray Ethereum’s resilience, notably with a massive 4.1 million ETH withdrawal from exchanges in the past ten days. This reduction places only 12 million ETH, representing 10% of total supply, on centralized exchanges—a level not seen since 2016.
The bullish indicators, in line with Bloomberg analyst Eric Balchunas’ prediction of the spot Ethereum ETF launching by July 2, suggest that substantial capital inflows into Ethereum may follow, potentially viewing the current price dip as a temporary setback before a renewed upward momentum post-ETF launch.
The rapid value appreciation of Ethereum, demonstrated by an ICO participant’s significant deposits and the subsequent rise in value, underscores its enduring investment potential.
Also Read: Ethereum Whales on $2.45 Billion Buying Spree Amid Market Volatility
