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03/10/24
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Ethereum Faces Turmoil as Whale Sell-Off Triggers Market Drop
Ethereum is currently experiencing a downturn as fear, uncertainty, and doubt loom in the market. Recently, Ether prices fell sharply after a significant Ethereum whale began liquidating a portion of its holdings. This whale, a participant in the blockchain’s initial coin offering (ICO) back in 2014, has been actively selling off Ether, with a notable sell-off of 19,000 ETH valued at approximately $47.5 million occurring in just two days.
The entity, which had been relatively inactive for years, marked its first foray into selling in late September when it transferred over 12,000 ETH worth around $31.6 million to the Kraken exchange. Having accumulated a total of 150,000 ETH during the ICO, the value of this initial investment of roughly $46,500 has ballooned to nearly $400 million today.
As a result of these market dynamics, Ether has suffered a nearly 10% drop since the start of October. After trading at about $2,650 on October 1, prices declined to as low as $2,365 by October 3, reflecting a 3.7% decrease that outpaced the broader cryptocurrency market decline of 2.6%. Additionally, the ETH/BTC trading ratio has dipped back to levels last seen during mid-September’s market slump.
This recent price action has reignited criticism of Ethereum, with some market observers expressing concern over the asset’s performance. It has been suggested that the former ICO participants’ shift from holding to selling translates into a broader lack of confidence. Nonetheless, Ethereum enthusiasts continue to back the network. Supporters highlight the platform’s ongoing developments and profitability, noting its capacity to produce multiple chains contributing to a significant overall profit.
On the institutional side, the outlook seems cautiously optimistic. The inflows into spot Ether ETFs, particularly driven by significant players like BlackRock, amounted to nearly $20 million on October 2, representing the most substantial inflow since the funds were launched. Conversely, the Bitcoin ETF sector has experienced consecutive outflows, indicating a divergence in investor sentiment between the two leading cryptocurrencies.
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