According to cryptocurrency analysis firm LookonChain, an Ethereum (ETH) whale might sell its holdings after laying dormant for five years. According to the analysis firm, the whale received 47,260 ETH, worth $11.34 million, from June to August 2017. The whale’s average cost per coin was around $240. Since 2017, ETH’s price has gone up by around 838%.
LookonChain notes that the whale wallet transferred 39,260 ETH, worth $87.5 million, to the cryptocurrency exchange Kraken on Dec. 5, 2023. If the whale sells its holdings, it would make a profit of around $78 million.
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Will the Ethereum whale sell?
The movement of assets to exchanges is bearish, given that it increases the chances of being sold. The whale may sell its Ethereum (ETH) holdings while booking profits. The wallet in question has made a profit of $78 million already.
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When Ethereum (ETH) reached its all-time high of $4878.26 in November 2021, the whale’s holdings were worth around $230 million. Analysts anticipate a bull market for the cryptocurrency sector in 2024. ETH and other assets, such as Bitcoin (BTC), may hit new all-time highs next year. Hence, the whale’s holdings could surge in value over the next few months. Therefore, the wallet might not sell its holdings just yet.
Some analysts expect ETH to hit a price of $10,000 in the next bull run. In such a scenario, the whale’s holdings could be worth around $472.6 million. It is unlikely that the investor, or group of investors, would want to miss out on an opportunity to make almost half a billion dollars.
It is also possible that the wallet is simply reorganizing its holdings and is temporarily keeping its Ethereum (ETH) in an exchange. The ETH may find its way back into a hard wallet soon.
