Ethereum (ETH) Price Drops 5% as ICO Whale Transfers $20 Million to Kraken

Ethereum is experiencing significant selling pressure, with its price falling below $3,400. As of now, ETH is trading at $3,436, down 4.23%, and has a market cap of $420 billion. On-chain data indicates that Ethereum ICO participants have begun liquidating their decade-old holdings.

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.

Just before the $ETH further plummeted 3hrs ago, an #Ethereum ICO participant deposited 5.5K $ETH ($19.3M) to #Kraken.

Notably, the whale:

• received 150K $ETH in 2015 at an ICO price of $0.31 ($46.6K),

• deposited a total of 10K $ETH ($35.4M) to Kraken in the past 2 days,… pic.twitter.com/fzswTXi3yx

— Spot On Chain (@spotonchain) June 18, 2024

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.

#Ethereum is beautifully riding a bullish continuation wave.

Every time it forms a pattern, it turns bullish. We’ve got a bull flag in play right now. pic.twitter.com/DQvztCsFY3

— Yoddha (@CryptoYoddha) June 17, 2024