Whale Transfers $90 Million Worth of ETH to Kraken, Triggering Price Downward Pressure

Concerns Rise as Dormant Ethereum Whale Transfers $90 Million to Kraken Exchange

A significant event caught the attention of the cryptocurrency community this week, as a long-dormant Ethereum whale, inactive for over five years, suddenly moved almost $90 million worth of ETH to the Kraken exchange. The revelation, first brought to light by Lookonchain, has sparked worries among investors about a potential sell-off that could exert substantial downward pressure on the value of the second-largest cryptocurrency, Ethereum, which recently experienced a test at the $2,200 mark.

The whale’s prolonged inactivity has intensified concerns, raising suspicions that it may be positioning itself for a sizable sell-off. The transaction involved the deposit of 39,260 ether to Kraken during the Asian morning hours. Notably, this wallet had previously received a massive sum of 47,260 ether in a single transaction back in 2017, valued at over $11 million.

An early $ETH whale appears to be selling ETH again after being dormant for 5 years.

The whale deposited all 39,260 $ETH($87.5M) to #Kraken 30 mins ago.

The whale received 47,260 $ETH($11.34M) at ~$240 from June to August 2017.

If sold the whale would make a profit of ~$78M. pic.twitter.com/v0PI4LNTKO

— Lookonchain (@lookonchain) December 5, 2023

What adds to the unease is the absence of indications linking the wallet to an exchange’s cold storage. However, a more in-depth analysis conducted by Arkham has proposed a potential connection between one of the transactions and a trading firm named Cumberland. Cumberland is known as a crypto trading firm and liquidity provider catering to institutional clients, introducing a layer of complexity to the situation.

As the crypto community watches the market closely, the sudden activity of this dormant whale has stirred speculation and ignited concerns about the immediate future of Ethereum’s price. Traders and investors are bracing for potential volatility as they await further developments and insights into the motives behind this substantial movement in the cryptocurrency space.

Potential Impact of Sell-Off on ETH: Analyzing Kraken’s Market Depth

As of the latest data on Tuesday morning, Kraken’s market depth for ETH trading pairs has surpassed $5 million. In the event that the dormant whale executes a substantial buy or sell order within this range, it could wield influence over the market, causing a notable shift of at least 2% in either direction.

The timing of this significant movement is noteworthy, given the recent surge in whale activity amidst bullish indications in the broader crypto market. Beyond Bitcoin, numerous altcoins have displayed impressive performance in the third quarter. Notably, tokens like XRP, LINK, and SOL experienced substantial price gains in November, showcasing resilience and growth even as Bitcoin’s dominance weakened.

As the market observes heightened whale activity, the motives behind such large transactions become a subject of speculation. While some whales may be capitalizing on profits, others might be strategically positioning themselves for a potential altcoin season.

Related: It’s “Not Too Late” To Buy Ethereum, Here’s Why

Notably, a prominent crypto analyst has identified a Golden Cross, a historically bullish pattern that has coincided with previous altcoin rallies, adding to the intrigue surrounding the market dynamics in the coming weeks. Investors and analysts alike remain attentive to these developments, anticipating potential shifts in the crypto landscape and preparing for the impact on Ethereum and other altcoins.