After an ICO-whale deposited $20 million, Ethereum prices fell. On-chain data implies a trend reversal soon.
Ethereum (ETH), the second-largest cryptocurrency in the world, has experienced significant selling pressure, resulting in a further decline and a fall below the $3,400 mark.
As of press time, ETH is trading 4.23% down at $3,436 with a market cap of $420 billion.
After a decade, Ethereum ICO participants have begun liquidating their holdings, according to on-chain data.
Ethereum ICO Whale Deposits 5.5K ETH to Kraken
SpotOnChain, an on-chain data provider, has recently reported substantial activity from an early Ethereum ICO participant, just hours before the ETH price experienced significant selling pressure.
The ICO whale deposited a total of 5.5K ETH, worth $19.3 million, to the Kraken exchange, according to the report.
Interestingly, the same participant has transferred a total of 10,000 ETH, which is equivalent to $35.4 million, to Kraken over the past two days.
The whale had initially received 150K ETH in 2015 at the ICO price of $0.31, for a total investment value of just $46.6K.
The whale participant continues to keep a total of 139K ETH, valued at $476 million, in three wallets, despite the recent transfers.
ETH Price Downside Is Limited
Ethereum has put investors’ patience to the test in recent weeks.
Following its failure to break through the $4,000 resistance, the ETH price has been trading sideways.
Meanwhile, almost 15% of the Ethereum price has been corrected thus far in June.
Despite this, the on-chain indicators continue to show strength for Ethereum.
There has been a massive withdrawal of 4.1 million ETH from exchanges in the past ten days.
According to Glassnode’s data, the centralized exchanges hold only 12 million Ethereum, which accounts for 10% of the total Ether supply.
This is the lowest level of ETH supply on centralized exchanges since 2016.
This bullish on-chain development, together with the launch of the spot Ethereum ETF, might result in significant capital inflows for Ethereum.
Bloomberg analyst Eric Balchunas anticipates that the spot Ethereum ETFs will be available for trading by July 2.
Therefore, this may be the final decline before the ETF is trading and the ETH price resumes its upward trend.
