Ethereum Whale Transfers Over $9.96 Million To Kraken
An Ethereum initial coin offering (ICO) participant and one of the earliest supporters of the smart contract platform has recently moved 6,000 ETH worth $9.96 million to the cryptocurrency exchange Kraken, according to data from Lookonchain on September 18.
The unidentified whale received 254,908 ETH during the 2014 crowdfunding when each ETH was traded for 40.31. At current spot rates, this amount is worth over $466 million.
The anonymous nature of public blockchains like Ethereum makes it difficult to determine the owner’s identity. Additionally, confirming whether an entity or individual controls a specific address is a complex task.
Typically, whale transfers to a crypto exchange are seen as bearish as they provide an easier option for token holders to cash out. Crypto whales, due to the size of their holdings, have the potential to influence the market and increase volatility through their trading decisions. Therefore, the recent deposit to Kraken may suggest that the whale intends to sell and take a profit.
On the other hand, it is possible that the whale is moving their coins to Kraken as an intermediary before transferring them to other platforms, such as Rocket Pool or Lido Finance, for staking.
In Ethereum’s current proof-of-stake consensus algorithm, whales can earn annual staking rewards by locking at least 32 ETH. While a whale can set up a node and stake on their own, liquidity staking providers like Rocket Pool allow users to stake and earn rewards using their infrastructure. There are currently over 804,000 validators operating an Ethereum full node, with a total of over 25.7 million ETH locked as of September 18.
Interestingly, the September 18 transfer aligns with the broader recovery in the crypto market. Ethereum prices have increased by approximately 6% from their September lows, leading supporters to expect further growth in the coming days.
Looking at the candlestick arrangement in the daily chart, ETH remains under pressure, dropping 23% from its highs of around $2,140 in 2023. However, since bears failed to reverse the losses of the previous leg up from June to July, buyers still have a chance. The rejection of lower lows from the 78.6% Fibonacci retracement level of the Q3 2023 trade range indicates that the September and August 2023 lows are critical support levels for ETH. Traders are particularly concerned about the retest of the lows recorded on August 17.
Overall, the transfer of such a substantial amount of ETH to Kraken by an early supporter raises questions about the whale’s intentions, whether to cash out or participate in staking. The crypto community will be closely monitoring further developments in the market as the bull rally continues.
(Note: All quotes remain unchanged as per rule 3)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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