The recent surge in Ethereum’s value has seen a corresponding surge in profit-taking transactions. On-chain analytics platform, Spot on Chain, recently recorded a significant deposit of 11,639 ETH tokens to the Kraken exchange by a diamond-hand whale, an investor known for his steadfast refusal to sell during market volatility, with a firm belief in the long-term prospects of his holdings.
This particular whale had previously withdrawn 96,639 ETH from Coinbase in September 2022 when the price was around $1,580 per token. Over the course of the following two years, the investor deposited all of the withdrawn tokens into Kraken when the price was around $3,080 per token. If these were indeed trades, the investor would have realized a profit of approximately $145 million, a staggering 95% over the course of 2.25 years, as highlighted by Spot on Chain.
This development has caused a stir in the market, as large investors, often referred to as crypto whales, are increasingly making their presence felt, taking advantage of the recent surge in prices. High-volume transfers of major assets to exchanges have been noted, leading to a short-term correction in the prices of many assets after weeks of upward momentum.
Ethereum, in particular, has seen a significant increase in high-volume transactions, with weekly volumes peaking at $17.15 billion before settling down to $7 billion. This uptick in whale activity correlates with the recent surge in Ether’s price, sparking speculation about the future price movement of the token and the impact of these substantial transactions.
Such high-level trading activity can have a considerable impact on the price of Ethereum. The recent positive ETH Exchange Netflow indicates that investors are depositing more tokens into platforms than they are withdrawing, with the primary intention of selling to realize profits. This trend could lead to bearish sentiment in the market, with Ether currently trading below $4,000.
Over the past week, Ether has appreciated by 7.40% to its current price of $3,940.18. However, on-chain data suggests a short-term price correction may be imminent, following a 35% uptick in the token’s value over the past month. Having recently breached the $4,000 level, there are concerns the token may have been overbought, with selling pressure expected to increase and potentially causing a fallback before any further upward trend.
These bearish signs are evident below the $3,922 support level. Should Ether’s price fall below $3,700, it could trigger a bearish run. As these large-scale transactions continue to shape the market, investors and analysts alike will be watching closely to see how these movements affect the long-term trajectory of Ethereum.
