With the $90 million worth of ETH in question, a buy or sale of that amount will cause at least a 2% move in the direction of the market.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
A yet-to-be-identified Ether (ETH) whale has raised curiosity with the latest move. This follows after the said whale deposited 39,260 ETH (worth approximately $90 million) to the cryptocurrency exchange Kraken in the early hours of Tuesday.
According to the on-chain analytics tool Lookonchain, the whale has been inactive for five years at the very least. The last transactions on the address saw it receive a total of 47,260 ETH. Those transactions took place between June and August 2017. And at $240 per coin, the series of deposits was worth $11.34 million in total.
With the recent transfer to Kraken, it appears that the unknown investor may be gearing up to sell the assets. If they sell right away, the whale is guaranteed to make a profit of no less than $78 million.
However, it remains unknown whether the investor will choose to exchange the tokens for stablecoins or convert them to other tokens.
As earlier mentioned, moving tokens to an exchange usually signals a potential sale. It could also mean that the holder just wants to convert to other tokens.
Whichever path they choose to toe, it can almost be guaranteed that there will be selling pressure on the token.
More so, current data shows that Kraken’s available market depth on ETH trading pairs is over $5 million. That was as of this publication. So, with the $90 million worth of ETH in question, a buy or sale of that amount will cause at least a 2% move in the direction of the market.
It might be noteworthy that previous transactions on the address show no links to the cold storage of any exchange. That is according to an analysis of the address by Coinspeaker. However, the Arkham Intelligence platform did show an interaction between the whale address and another address belonging to the trading firm Cumberland.
As of press time, ETH was down over 2% in the last 24 hours. The token was seen trading at $2,209.41, per CoinMarketCap data.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
