ETH Price Drops 5%, Ethereum ICO Whale Moves $20 Million of ETH to Kraken

The world’s second-largest cryptocurrency Ethereum (ETH) has come under strong selling pressure dropping an additional and slipping all the way under $3,400 levels. As of press time, the ETH price is trading 4.23% down at $3,436 with a market cap of $420 billion. On-chain data shows that Ethereum ICO participants have now started liquidating their holdings after a decade.

Ethereum ICO Whale Deposits 5.5K ETH to Kraken

On-chain data provider SpotOnChain has recently reported significant activity from an early Ethereum ICO participant just hours before the ETH price faced strong selling pressure. As per the report, the ICO whale deposited a total of 5.5K ETH worth $19.3 million to the Kraken exchange.

Interestingly, it turns out that the same participant over the last two days has moved a total of 10K ETH worth $35.4 million to Kraken. At the ICO price of $0.31, the whale had originally received 150K ETH in 2015 for a total investment value of just $46.6K. Despite the recent transfers the whale participant still holds a total of 139K ETH, valued at $476 million across three wallets.

ETH Price Downside Is Limited

Ethereum has been testing investors’ patience in the past few weeks. The ETH price has been moving sideways after failing to breach the $4,000 resistance. In the month of June so far, the Ethereum price has corrected almost 15%.

Despite this, the on-chain indicators continue to show strength for Ethereum. In the last ten days, there’s been a massive withdrawal of 4.1 million ETH from the exchanges. As per data from Glassnode, there are only 12 million Ethereum or 10% of the total Ether supply sitting on the centralized exchanges.  This is the lowest level of ETH supply on centralized exchanges since 2016.

This bullish on-chain development, coupled with the launch of the spot Ethereum ETF can lead to strong capital inflows for Ethereum. Bloomberg analyst Eric Balchunas expects the spot Ethereum ETFs to go live for trading by July 2. Thus, this could be the final pullback before the ETF goes live for trading and the ETH price resumes an upward rally.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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.