A big player in the Ethereum market made a major move this week, transferring 2,000 ETH worth $3.11 million to Kraken. This comes as the Ethereum price hovers dangerously near the $1,400 mark, recovering from a heavy drop on Sunday. The news has triggered a lot of speculation, as the market grapples with Ethereum’s current price action.
Whale behaviour has become a hot topic lately, with many speculating that these large transfers could signal either confidence or uncertainty in the broader market. Let’s break down why this whale’s actions are worth paying attention to.
The Seven-Year HODLer Finally Makes a Move
This Ethereum whale, who first entered the market in November 2017, grabbed 10,001 ETH at $352 each. Fast forward through the bull run of 2021, and this investor saw their holdings reach an impressive value of $45 million when ETH hit $4,878. Despite the massive price surge, this whale held onto their coins, choosing not to cash out.
But on Monday, that patience paid off when they transferred 2,000 ETH to Kraken for a whopping $3.11 million. While this move is significant, it’s just a fraction of their total holdings. If they were to sell the entire stash, they’d walk away with an eye-popping $12.3 million in profit.
Whale Activity Remains Strong as Ethereum Struggles
Despite Ethereum’s price struggles over the past month, whale transactions are seeing an uptick. In the past 24 hours, the number of ETH transactions over $100,000 has increased by 77%, according to IntoTheBlock. This indicates that bigger players are active in the market, which could be a sign that they’re confident in a future price recovery.
However, it’s important to note that while whale activity is on the rise, long-term holders seem to be starting to sell off. This presents a mixed picture for the broader market—while whales might see an opportunity, it could also be a signal of more selling pressure to come.
Ethereum and Optimism: Big Moves from the Big Fish
In the last couple of days, wallets holding between 1,000 to 10,000 ETH have increased from 5,340 to 5,388, indicating that whales are starting to stack up more Ethereum. Similarly, Optimism (OP) whales have also been making moves, with wallets holding between 10,000 to 1,000,000 OP increasing from 4,138 to 4,151 between April 4 and 6.
These moves suggest that whales might be looking to capitalize on low prices, especially after Ethereum’s recent drop. Optimism, in particular, has been under pressure, trading near its lowest levels in three years. If the whales continue accumulating, it could signal a rebound in the coming weeks.
Ethereum’s Key Levels: Will $1,400 Hold?
Ethereum is currently sitting in a precarious position, with its price just above $1,400. If ETH can break above $1,748, it could Ethereum price predictions a rally to $1,938, or possibly even $2,000. However, if the price falls below $1,400 and doesn’t regain traction, it could drop further, with support levels at $1,540, $1,505, and $1,380.
The next few days will be crucial for Ethereum’s price action, and these whale movements may be signalling that the market is poised for a breakout—if it can hold key support levels.