An Ethereum Initial Coin Offer (ICO) participant and one of the early proponents of the smart contract platform recently moved 6,000 ETH worth $9.96 million to Kraken, a cryptocurrency exchange. facts from Lookonchain on September 18.
The unidentified whale received 254,908 ETH when each traded for 40.31 during the 2014 crowdfunding campaign. This amount is currently worth more than $466 million at spot rates.
Ethereum Whale transfers more than $9.96 million to Kraken
The anonymous nature of public blockchains, including Ethereum, makes it more difficult to decipher the identity of the owner. Determining whether an entity or an individual controls the address is also more complex.
Whale transfers to a crypto exchange are usually considered bearish as the ramp provides an easier exchange option for token holders to cash out. Typically, crypto whales have the potential to influence the market due to the sheer size of their holdings.
Accordingly, their trading decisions can influence prices, increasing volatility. Therefore, the recent deposit at Kraken may indicate that the whale intends to sell and make a profit.
On the plus side, the whale could move its coins through an intermediary, in this case Kraken, before transferring them to other platforms like Rocket Pool or Lido Finance for staking.
In the current proof-of-stake consensus algorithm used by Ethereum, whales can earn annual stake rewards if they lock up at least 32 ETH. While the whale can set up a node and stake, liquidity staking providers like Rocket Pool allow users to stake coins and earn staking rewards using their infrastructure.
From September 18th it will be over 804,000 validators, that is, users who have at least 32 ETH locked up and operate a full Ethereum node. Cumulatively, more than 25.7 million ETH are locked.
ETH prices are recovering
At the time of writing, the September 18 transfer comes amid the broader recovery in the crypto market. Note that Ethereum (ETH) prices are up about 6% from the September low. Overall, supporters are optimistic and expect more growth in the coming days.
The pump also means that the bulls have reversed some of the September 11 losses, and the current formation could anchor the next move higher that could push the coin above $1,750, or the August 29 high, and could later erase the sharp losses of August 17.
From the candlestick arrangement on the daily chart, ETH remains under pressure and is down 23% from its 2023 highs around $2,140.
However, as the bears have not been able to reverse the losses from the June to July period, buyers have an opportunity after the rejection of lower lows around the 78.6% Fibonacci retracement level of the trading range in the third quarter of 2023. Currently, the September and August 2023 lows critical support levels for ETH, with the retest of the August 17 lows on September 11 raising concerns for bullish traders.
Feature image from Canva, chart from TradingView