On Feb 13, Whale Alert tweeted about a significant development in the cryptocurrency world: an Ethereum (ETH) address that had been dormant for more than seven years suddenly became active and held 100 ETH, which is today worth close to $150,000.
The value of the 100 ETH at the address, which was last active in 2015, was a mere $67. However, the value of cryptocurrencies has since increased, turning this formerly little sum into a sizeable sum.
It is still unknown why the address was inactive for such a long period. Additionally, why did the owner decides to make it active again at this time. The owner may have previously lost ownership of the address and has only now regained it.
The owner could have delayed the withdrawal of funds with the hope of ETH’s price increasing. The sudden arrival of 100 ETH into the market would undoubtedly grab traders’ and investors’ attention, regardless of the reason.
Ethereum Whales Responsible For Sharp Price Drop
The recent significant price correction that affected the cryptocurrency industry has worst hurt Ethereum. Ethereum’s sharp decline from $1,710 to $1,460 in just 11 days caused panic among cryptocurrency traders and investors.
Ethereum whales’ activities, rather than market conditions, are responsible for the recent sharp drop in Ethereum’s value.
According to on-chain data, Ethereum whales owning 100,000 to 1,000,000 ETH have been behind the recent price correction of the cryptocurrency. The data shows that these whales sold or transferred around 350,000 ETH, amounting to $560 million, during an 11-day period. Such a massive outflow of Ethereum could have played a crucial role in the significant drop in the cryptocurrency’s value.
The crypto market recognizes whales as major players because of their ability to move large amounts of cryptocurrency. Their transactions can have significant market impacts, emphasizing the need for traders and investors to monitor them closely.
The price drop led to questioning whale behavior. While some accused them of market manipulation, they could also sell for portfolio diversification or profit-taking.
Ethereum maintains its status as one of the most valuable and well-known cryptocurrencies despite the market slump. With a robust development community and a range of uses, including smart contracts and decentralized banking, Ethereum continues to be a major participant in the cryptocurrency industry.
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Many traders and investors maintain a positive outlook on Ethereum’s potential for long-term growth, owing to its strong developer community and versatile use cases in smart contracts and decentralized finance. The recent market correction underscores the significance of monitoring whale activity and the influence it could have on the market.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.
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