An inactive Ethereum whale has just re-entered the trading scene, withdrawing over $15 million worth of ETH in a single day. Given the slow price growth of Ethereum over the past few months and the sudden appearance of the whale despite months of dormancy, there could be a possibility of insider trading.
Dormant Ethereum Whale Moves $15 Million in ETH
A sudden $15.14 million Ethereum transaction has caught the attention of the crypto market, with the move either driven by privileged knowledge or a simple strategic positioning. According to data from blockchain analytics platform Onchain Lens, the transfer offbeat approximately 5,099 ETH from a dormant wallet address on Kraken entered active circulation on Thursday, January 22.
Based on on-chain records, the whale, identified by the address “0x761F2F”, remained inactive on the market for more than three months. The last times the whale actively moved in the market was when it executed a series of stablecoin and HYPE trades. The anonymous whale had initiated several million-dollar trades on UETH, USDT, and USDC. During this time, HYPE transactions were mostly token burns.
After withdrawing 5,099 ETH from Kraken, Arkham Intelligence reported that the whale had transferred the ETH to Lido Finance, converting it into 5,100 STETH. While there is currently no evidence of insider trading, the timing of the transaction raises questions, especially given Ethereum’s moderate price action over the past few months and rising prices. selling pressure from large holders.
Typically, crypto insider trading occurs when people with non-public information make large trades ahead of major market events that could influence market prices. Currently, there has been no rise in Ethereum pricenor any major news that could suddenly affect its movements. In fact, ETH continues to trade lowerdown about 1.7% in the last 24 hours. Its daily trading volume is also down 34.89%, signaling a loss of confidence among traders and investors.
Whales are long on Ethereum
Dormant big players suddenly re-enter the marketsome active whales remain optimistic about Ethereum’s long-term prospects despite its continued downtrend. According to famous market analyst Max Crypto, an anonymous whale has just open a $202 million long position in ETH with 15x leverage.
The scale of the exchange is extraordinary given Ethereum’s recent volatility. This shows great confidence in the future price development of cryptocurrency and its potential to overcome its current downtrend. Notably, the position has a liquidation price of $2,495, meaning that if ETH falls to this level, the trade could be forcefully closed by the crypto exchange, resulting in substantial losses for the whale.
Market participants are closely monitoring the positioning of whales, some call it’s a courageous but chaotic bet. Others even have speculated that the position may have been taken on the basis of inside information, fueling discussions about potential market movements and a possible bullish reversal for ETH.
Featured image created with Dall.E, chart from Tradingview.com
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