A participant in the Ethereum ICO who has been inactive for more than three years has lately moved 20,000 ETH, or around $42.4 million, to a number of locations, including the Kraken exchange, where they have deposited 10 ETH. The emergence of a massive cryptocurrency is correlated with Ethereum market fluctuations that may have wider ramifications.
This “whale,” as large-scale cryptocurrency holders are commonly called, first purchased 100,000 ETH during Ethereum’s initial token offering (ICO), when the platform was just getting started. The cost basis of this investment was around $31,000, with the ICO price hovering around $0.31. This amount is insignificant when considering the assets’ present worth.
When making such a move, time is crucial. According to the Ethereum price chart, the currency is seeking to maintain its momentum over the $2,000 mark by hitting a resistance level. The arrival of a major player of this kind, especially one that is starting deals this size, may indicate to the market a change in mood or liquidity that might spur more price movement.
Even if 20,000 ETH is a significant amount, the present Ethereum market capitalization is so large that a transaction of that size is unlikely to have a significant impact on the market on its own. It does, however, highlight the possibility that powerful holders might shift markets. In the event that this whale decides to sell off a sizable chunk of their holdings, a sizable amount of Ethereum might enter the market and drive the price lower.
On the other hand, market confidence may be bolstered and prices may rise if this whale were to lock in their holdings or distribute them in a way that signals a long-term hold plan. Although the deposit to Kraken may be the first step towards liquidity, a significant sell-off is not always anticipated.
