- An Ethereum ICO participant deposited a large amount of ETH to Kraken.
- Selling pressure on holders remained low while bears continued to short.
According to recent data provided by Lookonchain, an Ethereum [ETH] ICO (initial coin offering) participant re-emerged after eight years and deposited 61,216 ETH ($116M) to Kraken on 19 July. The participant received 61,216 ETH at Ethereum Genesis, with an ICO price of approximately $0.31.
Realistic or not, here’s ETH’s market cap in BTC’s terms
An Ethereum ICO participant woke up after 8 years of dormancy and deposited all 61,216 $ETH($116M) to #Kraken 2 hrs ago.
He received 61,216 $ETH($116M currently) at Ethereum Genesis, the ETH ICO price is ~$0.31.https://t.co/HLSXvqyBDb pic.twitter.com/YWVlIcxN99
— Lookonchain (@lookonchain) July 19, 2023
How can ETH be impacted?
The ICO participant’s deposit may lead to increased selling pressure in the Ethereum market. This increased selling activity could affect supply-demand dynamics and potentially lead to ETH’s downward price movements in the short term.
The future behavior of this whale will play an important role in ETH’s price movement in the future.
Despite the FUD caused by the whale’s deposits, retail investors have continued to show faith in Ethereum. According to Glassnode, the number of non-zero addresses has recently reached an all-time high of 102,913,926. As the number of retail investors holding Ethereum rises, the possibility of them being more vulnerable to whale behavior grows.
Source: Glassnode
Will the bears turn out to be right?
At press time, the selling pressure on Ethereum was relatively low. This was indicated by the relatively low MVRV ratio. A low MVRV ratio suggested that only a few ETH addresses were profitable at press time, which suggested that most of these addresses had a lower incentive to sell their holdings.
Additionally, the high Long/Short difference of Ethereum implied that the number of long-term addresses outnumbered the short-term holders. These addresses are less likely to sell their ETH.
Source: Santiment
Is your portfolio green? Check out the Ethereum Profit Calculator
Despite these factors, the number of short positions taken against ETH has gone from 48% to 52.31% in the last few days, according to Coinglass.
This rise in short positions may have been induced by recent whale behavior.
Source: Coinglass
