Ethereum Foundation Wallet Deposits $56 Million in ETH on Kraken, ETH Price Drop Soon?

The world’s second-largest cryptocurrency, Ethereum (ETH), experienced a significant correction of over 3.5%, with its price falling below $3,700. The ETH price hit an intraday low of $3,620 before rebounding.

Ethereum Whale Deposits 15,254 ETH to Kraken

In a recent update provided by on-chain data provider LooKonChain, it was revealed that amidst the decline in the price of Ethereum (ETH), a wallet associated with the Ethereum Foundation made a significant deposit of 15,254 ETH, equivalent to approximately $56.1 million, into the Kraken exchange.

This deposit, occurring just 8 hours prior to the announcement, attracted attention due to the origin of the ETH in the wallet, sourced from both an Ethereum Foundation wallet and another wallet that received 200,000 ETH during the Ethereum Initial Coin Offering (ICO).

A recent report from Whale Alert indicates that a previously inactive pre-mined Ethereum (ETH) address, holding approximately $21.9 million, has become active after nearly nine years of dormancy.

This marks the first reactivation of a pre-mined Ethereum address observed in June. In May, two similar addresses, one holding $325,535 and the other $5.9 million, respectively, also experienced sudden activity after a prolonged period of dormancy.

ETH Price Action Ahead

According to the latest findings from the on-chain data analytics firm, Ethereum’s demand has surged following the approval of spot ETH ETFs in the US on May 20. Since then, the daily acquisition of ETH by long-term holders has surged to an average of 40,000 ETH, a significant increase from the pre-announcement average of 5,000 ETH.

Furthermore, the report highlights a notable uptick in the total holdings of major ETH investors, which now stand at 16 million ETH. This figure marks an increase from the pre-ETF approval level of 15.4 million ETH and the beginning of 2024, when holdings were at 14.9 million ETH