Ethereum ICO Investor Ignites Massive Coinbase Dump As ETH Price Soars To $3200

Ethereum (ETH), the second-largest crypto, has grabbed the spotlight after it soared past $3,200 yesterday. However, the rally has led to an increased selling pressure since long investors are trying to realize their profits. Amid the price jump and sell-offs, an Ethereum ICO participant, dormant for 8.6 years, resurfaced.

Ethereum ICO Investor Dumps ETH Reserve

According to data from Lookonchain, an onchain data tracking platform, the dormant Ethereum ICO investor deposited 238.75 ETH, worth $770,000 to Coinbase, a popular crypto exchange. The investor acquired the ETH reserves at Ethereum Genesis for $0.31 per ETH, marking a whopping 10,980,000% profit. The dump of Ethereum reserves on Coinbase could be a significant catalyst in impacting the prices if the whale decides to sell the entire reserve.

Such dormant Ethereum whales generally resurface whenever the ETH price surges, hence, the update doesn’t come as a surprise. Last week, an early investor in Ethereum, who had been inactive for nearly a decade, transferred 1,732 ETH, equivalent to $5.15 million at the time, to the cryptocurrency exchange Kraken. This move coincided with the Ethereum price surpassing the $3,000 mark.

The investor had originally purchased their ETH during the ICO period at a price of $0.31, similar to that of the dormant whale who became active today. Moreover, the Ethereum ICO investor got his hands on a potential return of 10,000 times their initial investment if sold above $3,000.

Currently, there is still 1,733 ETH remaining in their wallet, valued at over $5 million. While it remains uncertain whether they sold the reserves or not, transferring funds to Kraken suggests they were considering the possibility.

Also Read: Ethereum (ETH) Price Up 5% As Layer-2 DeFi TVL Hits $30 Billion

ETH Price Today

The Ethereum price soared 6.11% to $3,246.33 at the time of writing on Tuesday, February 27. The crypto held a market cap of $389.80 million. Moreover, the 24-hour trading volume for Ethereum spiked by 60.94% to $22.14 billion. The recent rally could have been spurred by the overall optimism in the market owing to the rise in Bitcoin funding.

According to Coinglass, the ETH open interest gained by 1.50% to $11.33 billion. While long investors increased the sell pressure, short traders braced for a short squeeze. Ethereum witnessed $66.87 million total liquidations of which $45.66 million accounted for short liquidations. Since the ETH price shot up unprecedentedly, these traders would liquidate and buy their positions back to minimize losses.

The increased purchasing pressure could propel the ETH price even higher. However, in case of a bearish turn, these short traders would start dumping their holdings, further catalyzing the downfall. Hence, extreme volatility could ensue in the coming days.

Also Read: KyberSwap Attack Update: $2.5M in Ether Transferred to Ethereum Network