A dormant Ethereum (ETH) wallet containing thousands of coins collected during the network’s token generation event is awake after nearly three years.
According to Lookonchain data, on November 24, approximately $42.4 million worth of ETH was moved, with 10 ETH deposited directly to Kraken, a crypto exchange.
Ethereum Whale Awakens
On-chain data reveals the dormant wallet first collected 100,000 ETH during the 2014 Ethereum initial token offering (ICO) – worth around $31,000.
Then, the coin was being issued for $0.31. Over the years, ETH prices have continued rallying, rising to all-time highs in 2021.
Notably, despite being among the earliest ETH holders, the whale last moved coins in 2020. Impressively, the address didn’t even cash out throughout the 2021 bull run when prices soared to as high as $4,800.
In September 2020, the wallet transferred 0.70 ETH. However, before then, in 2019, the address had moved a total of 40,000 ETH, data from Etherscan reveals.
Usually, whenever a whale moves a significant amount of coins to a centralized crypto exchange like Kraken, it could suggest that the owner wishes to liquidate, cashing out for fiat or even another digital asset like Bitcoin (BTC).
As such, crypto traders usually interpret such transfers as being bearish and may impact the overall market sentiment.
ETH Bulls Firm, Prices Trending Higher
While overly negative, looking at the amount transferred to Kraken, ETH bulls and traders across the board will likely remain upbeat.
Only 10 ETH, not 20,000 ETH, were moved to the exchange. It is yet to be verified if they also sold.
Although the coin may be sold, ETH–or any other large stash of assets landing on an exchange, does not guarantee intentions to sell. In some instances, the whale, as it is at the moment, could be establishing liquidity pathways should favorable exit opportunities emerge.
Moreover, whales and institutions frequently spread holdings across verified platforms, including custodians and trusted and regulated exchanges, as part of risk management.
For now, Ethereum prices continue to inch higher when writing. The coin is trading above $2,000 but remains relatively volatile. Notably, buyers still need to build on the gains of November 9, reading from price action in the daily chart.
Overall, any confirmation of the bullish engulfing bar of November 9, pushing prices above $2,100, subsequently registering fresh 2023 highs, could see ETH tear higher in the days ahead. Sustained ETH gains may see ETH reach March 2022 highs of around $3,500.