Dormant Whale with Over $1B in ETH Begins Selling After 8 Years Amid Ethereum Price Surge
An Ethereum whale worth over $1B begins selling after 8 years as ETH surges, raising questions about market impact and future price movements.
In a significant market development, an Ethereum whale that has remained inactive for over eight years has started to sell portions of its holdings.
Whale Activity
According to a recent tweet from Lookonchain, this whale controls 28 wallets and has begun selling from its substantial stash of 398,891 ETH, valued at approximately $1.14 billion. On November 7, the whale sold 13,400 ETH in just six hours, amounting to around $37.38 million at an average price of $2,790 per ETH.
The whale’s accumulation of Ethereum began in January 2016 through Erik Voorhees’s crypto exchange, ShapeShift, where it acquired ETH at an average price of about $3.5. Notably, all 28 wallets transferred ETH to new addresses in August 2016, indicating that these wallets are likely interconnected and managed by the same entity, as per Lookonchain's analysis.
Market Reactions
The timing of these sales has raised eyebrows, especially following the recent US presidential election, which has led to a market-wide rally. Ethereum has surged over 8% in the past 24 hours, outperforming both Bitcoin and Solana during this period. As of now, ETH is trading at $2,818, and analysts are optimistic about its potential for a significant rally.
Pseudonymous crypto trader Byzantine General has suggested that Ethereum might be on the verge of a major price increase due to a buildup in open interest, primarily consisting of short positions. This situation could lead to a short squeeze, compelling traders who have bet against ETH to buy back their positions, potentially driving the price even higher.
Ethereum ETFs Experience Strong Inflows
Following Donald Trump's recent electoral victory, spot Ethereum ETFs in the US have seen a notable uptick in investments, reaching a six-week high in inflows. On November 6, nine spot ETFs recorded a combined net inflow of $52.9 million, with Fidelity Ethereum Fund leading the way at $26.9 million, followed closely by Grayscale’s Ethereum Mini Trust at $25.4 million.
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