A surge in crypto market activity marked an unexpected move by a long-dormant Ethereum whale, who began liquidating its holdings after eight years of inactivity.
Ethereum Whale Sells Assets After 8 Years
According to Lookonchain's latest tweet, the entity that controls 28 wallets has recently started selling part of its 398,891 ETH, worth approximately $1.14 billion. On November 7th, within a span of six hours, 13,400 ETH worth around $37.38 million was sold at an average price of $2,790 per ETH. The whale's history indicates that they started accumulating Ethereum from the crypto exchange ShapeShift back in January 2016 at an average cost of $3.5 per ETH. All 28 wallets transferred ETH to new ones in August 2016, suggesting these addresses are likely connected and managed by the same whale, as per Lookonchain.
Experts Predict Possible Ethereum Rally
The recent sales have sparked curiosity and potential concern, especially given the timing of these large-scale transactions following the US presidential election. Ethereum surged by more than 8% over the past 24 hours, outperforming Bitcoin and Solana. At the time of writing, ETH was trading at $2,818, but experts suggest that it could be poised for a 'monster rally'. The pseudonymous crypto trader Byzantine General suggests that the world's largest crypto asset could be poised for a major rally due to the current buildup in open interest, which he believes is heavily loaded with short positions. The trader hints that this could become one of the most memorable short squeezes in Ethereum's history, potentially driving ETH's price significantly higher.
Record Inflows to Ethereum Funds
Following Donald Trump's victory, US spot Ethereum ETFs experienced a significant increase in investments, with inflows reaching a six-week high. The nine spot ETFs received a combined $52.9 million in net inflows on November 6. The Fidelity Ethereum Fund accounted for the largest portion with $26.9 million, followed by Grayscale's Ethereum Mini Trust with $25.4 million. The remaining seven ETFs, including BlackRock's iShares Ethereum Trust, saw no inflows.
The awakening of the Ethereum whale and its resumption of sales has drawn attention to potential market shifts, while experts continue to watch for developments and their impact on crypto assets.
