Highlights:
- A long-term Ethereum whale has sold 18,700 ETH worth approximately $34.11M.
- The whale originally purchased around 76,000 ETH during the 2015 ICO at a price of $0.31 per coin.
- The recent sales have all been made through the Kraken exchange in several large batches.
A major Ethereum wallet holder made an 18,700 ETH transaction worth $34.11 Million that raised market concerns. The seller purchased the ETH tokens at the Ethereum ICO in 2015 at an initial price of 0.31 cents.
An extended period of inactivity marked the whale’s status until they started selling a significant portion of their total holdings.
The Ethereum network entered its big Pectra upgrade period during this acquisition of 18,700 ETH worth $34.11 Million. Movements in market direction and technical indicators point toward forthcoming market volatility.
Large-scale cryptocurrency dumping has people concerned due to the timing and magnitude of the sales.
During Ethereum’s updates to improve functionality, the market reacts to internal factors and external stressors. The current tension observed in the ETH-BTC exchange market could be impacted by upcoming worldwide economic changes.
The trading community tracks diverse market signals, including price charts and technical analysis metrics, during this protocol transition.
Ethereum Whale Cuts Holdings Ahead of Pectra Upgrade
The wallet of a dormant whale has drained its Ethereum balance through multiple large transfers in recent weeks. The whale exchanged 14,000 ETH valued at $24.75 Million and made a subsequent transfer of 4,700 ETH to Kraken. The whale used multiple batches to conduct its systematic asset distribution.
During its ten-year period of holding ETH acquired during the ICO the whale held approximately 76,000 ETH that remain idle. At the time of writing, the ETH wallet contained just 11,000 coins worth $20.2 Million. All the whale’s ETH transactions have been done on Kraken because the account maintains a consistent trading pattern.
Market participants interpret the whale’s trading patterns to predict market actions. The whale’s coin transactions indicate price shift speculation during the upcoming upgrade. Due to more whale activity in the market, market sentiment and liquidity may face short-term changes.
Pectra Upgrade Triggers Market Shift as Volume Declines
The Ethereum Pectra upgrade, which introduces a set of infrastructure and scaling capabilities for the network, is reaching live implementation today.
As part of its upgrade preparations, Binance shut down its ETH-based token withdrawals and deposits. This technical change has reduced market trading volume.
ETH’s price increased meagerly by 2.44% to reach approximately $1,838 as traders conducted low-volume transactions in the market.
Since June 2020, the ETH-BTC pair has observed an unprecedented narrowing of its Bollinger Band ranges. Market volatility is known to increase after a Bollinger Bands squeeze, which in turn boosts market speculation.
Despite positive technical aspects in the upgrade, platform-wide spot trading volumes show muted overall performance. Market analysts believe that lower trading activity will reduce the current selling pressure in spot markets.
Despite the current data, the price movement lacks confirmation about reaching a bottom due to economic factors.
ETH Faces Resistance as Fed Decision Looms
The 50-day EMA resistance represents a critical threshold for Ethereum to pass through to potential expansion. ETH’s momentum has faded since January because the digital currency started recovering from its five-month price decline.
Market participants watch this resistance area, anticipating that it might determine the market direction.
The crypto market shows signs of responding to macroeconomic indicators, primarily due to the upcoming FOMC meeting on Wednesday.
Research indicates a 95% likelihood that the Federal Reserve will keep interest rates unchanged. Because of this current decision, the major rally of altcoins may wait longer.
ETH and other digital assets will likely stay within their current price range since central banks resist interest rate reductions in the near future.
While technical indicators from Pectra update the market positively, the broader sentiment depends heavily on outside market influences.
Several factors, including whale market actions and volume fluctuations, along with macroeconomic conditions, lead to a sensitive market condition.
