A crypto whale has moved 5,597 ETH worth approximately $19.4 million to Kraken, adding to the rate of asset movement. This comes following inflows to crypto assets, taking prices to points not recorded in months. Ethereum bulls have projected the asset soaring past $4K, but this depends on a much larger crypto sentiment. At press time, Bitcoin and top assets have recorded daily outflows, increasing sell pressure.
Huge Transaction Linked To ETHDEV
According to Lookonchain data, the 5,597 ETH was linked to an EthDev account, which can drive low sentiments. EthDev is the development arm of the Ethereum Network and includes a consortium of associations. Traditionally, moving assets to centralized exchanges point to a potential sale due to the ease of transfers.
The move to Kraken also triggers sell pressures as users continue to monitor fund flows. This year, the crypto community flagged transfers from the Ethereum Foundation, which led to massive criticism. The huge transfers led to calls for transparency on the part of the Foundation. In August, a wallet linked to the Foundation transferred 35,000 ETH worth around $96 million.
Amid the criticisms, Aya Miyaguchi, a director at the Foundation, explained that transfers were part of administrative expenses.
“This is part of our treasury management activities. EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any treasury activities due to the regulatory complications, and we were not able to share the plan in advance.”
What’s Next For Ethereum?
The recent transfer to Kraken sent buying pressure downwards, with the price hovering near the $3,500 mark. Daily sideways trading continues, resulting in a slight 0.5% gain. However, weekly figures remain bullish, as the ETH recorded 9.4%, trumping Bitcoin and raising speculations for the altcoin season.
However, Ethereum has lost steam compared to other altcoins. XRP and Solana gained in terms of institutional inflows, outpacing the altcoin leader. While Solana pulled in $16 million in inflows, ETH flows stood at $2 million in the last seven days. Similarly, Chainlink and Litecoin also saw considerable inflows compared to previous weeks.