ETH Whales Moves $64.2 Million in Six Days Before 2-Year ETH Rally
The report has it that the withdrawal of $64.2 million worth of Ethereum over six days by Ethereum whales holding significant sums of ETH has raised questions about possible market dynamics among market analysts.
One whale address, 0x8B94, was involved in a significant withdrawal from Kraken’s cryptocurrency exchange during one of these significant transactions. The overall flow of Ethereum from exchanges to private wallets was further enhanced by these transactions, which took place on February 24 and 25, respectively.
The whales’ large Ethereum withdrawals raise several potential scenarios and approaches to the cryptocurrency market. According to some analysts, these shifts are signs that major investors are optimistic about Ethereum’s potential for price growth.
Analysts Say the Recent Transfer Signifies Whale’s New Strategy
Mandy Williams, a market analyst from CryptoPotatoe, says that moving money from exchanges to private wallets may indicate a long-term strategy for investing as whales prepare themselves for potential price increases.
These withdrawals happened right before Ethereum’s two-year high surge, which makes their timing remarkable. Williams believes these significant investors might have foreseen Ethereum’s price momentum and acted appropriately to position themselves favorably in the market.
Ethereum whales’ withdrawals from Kraken highlight the recent holding and stockpiling among big investors. These whales indicate that they plan to keep their Ethereum holdings for the long run by transferring them into private wallets, which could lead to a shortage of cryptocurrency on exchanges.
While some industry analysts believe that the reason behind the increase in the price of Ethereum remains a mystery, others believe that the proposal for the approval of spot ETH Exchange Traded Funds (ETFs) in the United States may be the cause.
It was gathered that the proposed Dencun upgrade is also linked to the reason for the increasing price of Ethereum. The Dencun upgrade, when launched will solve the problem of slow speed of transactions, as well as high gas fees thus, augmenting the efficiency of the Ethereum layer-2 solutions.
Whale Moves 14,632 ETH and 3,850 ETH, ETH Unit Declines
Market liquidity may be impacted if Ethereum is removed from exchanges. Investigations show that the amount of Ethereum available for trading on exchanges declines as more of it is transferred into private wallets. This is believed to drive up prices, particularly in times of great demand.
Data from Lookonchain says that a whale with the I.D. 0x8B94 moved 14,632 ETH, valued at $45.5 million, to Binance. The data also noted that the transactions were made in six phases, with the first carried out on February 20. From the analysis, 10,820 ETH was initiated by Whale 0x8B94, which was gathered by February 23 for staking.
The cryptocurrency tracker reported that the final 3,850 ETH was moved between February 24 and 25. Another data from Etherscan showed that whales had 4.7 ETH in balance, valued at approximately $14,500 (as of the time of the report).
Ethereum Gains 2% in 24 Hours, More Whale Withdrawals Recorded
Report has it that aside from the whale’s two new big wallets, 0xBa74 and 0x8Fa5, 3,000 ETH were transferred each from the Kraken cryptocurrency exchange on the 24th and 25th of February. Although it is not sure that the same whale owns the said wallet, no recorded transaction history is found on them.
Each wallet mentioned held the withdrawn Ethereum valued at $9.26 million as of press time. Data from CoinMarketCap shows that this withdrawal is coming when the price of ETH is hovering around the $3,000 price mark, showing a 2% increase in the last 24 hours.
However, the cryptocurrency market has gained traction recently, reaching the same level it last attained in 2022. Meanwhile, Ethereum had a short drawback in price earlier this month after it passed the $3,000 price mark; analysis on prominent cryptocurrency analysis platforms like CryptoPotatoe says the price rise may as well continue over time.
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