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U.Today - Ethereum is once again in the news, but this time it is not because of bullish sentiment but rather because of a huge surge in whale activity that could signal a major sell-off. Two well-known Ethereum owners made calculated and possibly game-changing decisions in a few short hours.
Concerns were raised right away when a wallet connected to the Ethereum Foundation sent Kraken 1,000 ETH, or about $1.58 million. Notably 10 years ago, when ETH was valued at about $1.20, the foundation sent 84,513 ETH to this address. The significant unrealized gains from this recent transaction may indicate the start of a wave of long-term holders taking profits.
Paradigm, an investment firm, made an even more startling move. Anchorage, a platform frequently used for institutional asset custody, received 5500 ETH (~$8.66 million) from Paradigm approximately three hours prior to the foundation’s transaction. At an average price of $3,110 over the previous year, Paradigm has transferred an astounding 96,955 ETH valued at over $302 million into Anchorage.
Such actions have historically come before ETH transfers to well-known exchanges like Coinbase (NASDAQ:COIN) and Binance, suggesting potential liquidation plans. Ethereum has recently shown a moderate recovery on the price chart, rising above $1,620 and gaining almost 2% on the day.
This relief effort is still shaky, though. The fact that ETH is still trading below important resistance levels close to the 50 EMA ($1,835) and well below the long-term 200 EMA ($2,530) indicates that the trend is still bearish overall. The market has not yet developed any strong directional conviction, as evidenced by the low volume in comparison to earlier breakouts and the RSI hovering close to the neutral zone.
Any indications of weakness could set off a chain reaction as major players are increasing their sell-side pressure. Ethereum may see fresh downward pressure if these ETH transfers lead to significant selling. Exchange inflows could be the calm before the storm, so traders and investors should keep a close eye on them in the days ahead.