TL;DR
- An Ethereum ICO participant sold 3,000 ETH for $7.64 million.
- This investor’s previous sale in July caused the price of Ethereum to drop by 15%.
- The investor still owns 37,070 ETH, valued at $93.8 million.
A major investor who participated in Ethereum‘s initial coin offering (ICO) has made a significant new sale, sparking concerns about the future of ETH’s price.
This investor, known as a “whale” due to the large number of tokens he owns, recently sold 3,000 ETH, equivalent to $7.64 million.
An #Ethereum ICO participant sold 3K $ETH($7.64M) again 55 mins ago.
The last time this whale sold 7K $ETH($24.28M) was on July 1, after which the price of $ETH dropped nearly 15%.
This whale received 254,908 $ETH during the ICO(initial cost was $79K, now worth $646M), and… pic.twitter.com/iAZEVDKmkf
— Lookonchain (@lookonchain) October 24, 2024
This event resembles a similar situation that occurred in July, when the same whale sold 7,000 ETH, causing a 15% drop in the value of Ethereum.
Blockchain analytics platform Lookonchain has been the main source to highlight this new transaction. According to the data, the investor received a total of 254,908 ETH during the Ethereum ICO, when the initial purchase price was just $79,000.
Today, that amount of ETH would be worth an astronomical $646 million. Despite the recent sales, the investor still holds 37,070 ETH, which is currently valued at $93.8 million.
The fact that an investor of this magnitude has decided to sell a considerable fraction of his assets at a time of market correction has made many traders cautious.
In the past, the actions of these large whales have had a notable impact on market movements, and this recent event has not gone unnoticed.
It is not yet confirmed whether the sale will have the same effect on the price of ETH as it did previously, but history suggests that investors should keep an eye out for any significant changes in the coming days.
Possible impact on Ethereum price
Over time, moves by large investors like this have generated speculation and volatility in the cryptocurrency markets.
The fact that this whale has reduced its Ethereum holdings so abruptly suggests that there could be expectations of a possible pullback in the token’s value. However, not all analysts believe that such sales will necessarily lead to a drastic drop in the price of ETH.
It’s important to note that the cryptocurrency market is known for its volatility, and while history shows us that sell-offs by large holders can impact the price, other factors such as general demand, advancements in the Ethereum network, and government regulations also play a key role.
Investors will be closely watching Ethereum’s price action in the coming weeks to see if this investor’s sell-off has the same impact as in July. For now, the market appears to be relatively stable, although uncertainty remains.
Ultimately, while this ICO participant’s sale of ETH has raised concerns, it remains uncertain whether a drastic drop similar to the previous one will be seen. With 37,070 ETH remaining in his possession, it is possible that this investor could still have more influence on the market if he decides to make further sales in the future.
