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Dormant Ethereum Whale Wakes Up After 8 Years, 6,000 ETH Facing Selloff Risk
An Ethereum (ETH) address that has not been active since the early days of cryptocurrency has become active again and has impacted the market. This reawakening needs approximately 6,000 ETH or approximately $21. 9 million and has been without any activity for almost nine years. This comes after a major U.S. economic data release that has impacted the global markets and at a time when Ethereum is experiencing high volatility.
Ethereum Whale Awakens, Market Braces for Impact
The reactivated wallet is part of a trend that has been noticed in the last few months, ETH addresses from the initial pre-mine phase of the network have become active again. This particular wallet’s movement was captured for the first time in June. In May of this year, two other similar addresses containing a large number of Ethereum were also activated. These cases indicate that there could be a behavior of large holders, or ‘whales,’ driven by market conditions.
This activation took place when Ethereum’s price stood at $3,642. This drop occurred immediately after a stronger-than-expected US jobs report, suggesting that the US economy is still in good shape and decreasing the chances of the Federal Reserve cutting rates soon. Therefore, this has resulted in increased trading activities and increased concerns regarding more rate hikes.
As soon as the dormant address was activated, Ethereum’s market response was clear and swift. Long positions constituted almost 93% of the liquidations, with nearly $49 million in Ether positions liquidated within four hours. This drastic market movement demonstrates the effect that large inactive addresses can have when they move or sell their holdings.
Current trading data reveal a marked increase of 31.33% in ETH’s 24-hour trading volume, which now stands at over $18 billion. Such spikes in volume often attract attention from retail and institutional investors, speculating on the whale’s next moves. Analysts are closely monitoring these developments, as they could precede further selloffs or a possible market recovery, depending on subsequent actions by the whale and broader market reactions.
ETH Price Struggles Near Key Resistance Levels
From a technical perspective, Ethereum recent price actions suggest a consolidation phase. After experiencing resistance around the $3,967.43 level, the price has hovered near $3,689.74. Notably, a long red candlestick indicated a significant sell-off, breaching both the middle and lower bands of the Keltner Channel. This points to strong sell pressure at higher price levels.
Source: TradingView
The Relative Strength Index (RSI), currently at 54.59, has dropped from previously higher levels, signaling a weakening buying momentum. This metric is critical as it shows that the inclination toward selling is growing while the market is not oversold or overbought territory. If Ethereum holds above the $3,600 support, it may stabilize; however, breaking this threshold could precipitate further declines.
Also Read: Pro-Bitcoin Donald Trump Declares Himself “Crypto President”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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