According to data from CoinMarketCapEthereum price has dropped by 10.23% over the past seven days, in line with the overall negative market movement. This cryptocurrency market downturn is being attributed to a number of factors, including heightened geopolitical tensions in the Middle East and increasing liquidation of long positions.
While Ethereum has experienced some rebound in the last day, gaining 3.21%, investors remain uncertain about the full price recovery and bearish sentiment prevails in the market. It is worth noting that an Ethereum ICO participant has currently sold a significant amount of ETH, which increases concerns about a prolonged downtrend.
Ethereum Wallet ICO Continues Selling Spree, Releases 40,000 ETH in Two Weeks
According to data from a blockchain analytics companyLookonchain, an Ethereum wallet with the address “0xBF4”, transferred 6,000 ETH worth $14.11 million to the Kraken exchange on Friday. So far, the address has been identified as belonging to an early Ethereum investor who purchased 150,000 ETH worth $368 million in 2014 as part of the asset’s initial coin offering (ICO).
Data from Lookonchain highlights that this is the second ETH sale by “0xBF4” in the last week after the ICO participant initially sold 19,000 ETH worth $47.54 million on Wednesday and Thursday. Especially this ETH whale moved as of September 22, it has accumulated 40,000 ETH worth $101 million, maintaining a balance of 99,500 ETH worth $238 million.
Generally speaking, mass token landings by huge holders, such as whales, are interpreted as bearish signals because they indicate a lack of confidence in the long-term viability of the asset. A sale like the one seen with “0xBF4” could cause panic among smaller investors, putting more downward pressure on the Ethereum price.
Related Reading: Crypto Capo Returns After 2 Months to Predict Ethereum’s Drop to $1,800. Is it time to go long?
108,000 ETH transferred to exchanges within 24 hours
In addition to the “0xBF4” wallet address, other investors have recently sold off huge amounts of ETH. According to analyst Ali MartinezOn the last day, 108,000 ETH worth $259.2 million was transferred to exchanges. This massive selling activity indicates increased sentiment in the ETH market.
Ethereum is currently trading at $2,399 after a recent price surge. However, its daily trading volume dropped by 17.48% and is valued at $14.61 billion. If bearish sentiment continues, ETH could return to around $2,200, which is the next significant price level. However, facing enormous selling pressure, the altcoin could be trading at a price as low as $1,600.
With a market capitalization of $291.40 billion, Ethereum continues to be the second largest cryptocurrency with a market lead of 13.47%.
Featured image from NullTX, chart from Tradingview
