Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a sharp price drop recently, moving from $1,940 to $1,847. While various factors play into the volatility of cryptocurrency prices, the substantial sell-off by a particular "whale" is believed to have significantly contributed to Ethereum's decline in this instance.
A "whale" in the crypto universe refers to an individual or entity that holds a large amount of a particular cryptocurrency. When such a player makes substantial trades, it often triggers notable price movements. In this case, an Ethereum whale strategically deposited 25,000 ETH (valued at approximately $47.24 million) to Binance, the popular crypto exchange platform, and withdrew 15.9 million USDT 12 hours later.
The smart whale who deposited 25K $ETH ($47.24M) to #Binance yesterday withdrew 16M $USDT again 9 hrs ago.— Lookonchain (@lookonchain) June 29, 2023
The drop in $ETH price 11 hrs ago was most likely due to the sell-off of this whale.
And the whale may have ~8K $ETH ($14.7M) left unsold.https://t.co/EucQrT7C4w pic.twitter.com/Aogfv9vOdO
Renowned for buying low and selling high, this crypto whale has maintained a perfect win rate for Ethereum trading over the past couple of months. This successful strategy, while profitable for the whale, has recently resulted in downward pressure on ETH's price.
Just nine hours after the initial transaction, the whale proceeded to withdraw another 16 million USDT, further contributing to Ethereum's downward spiral. Analysts believe the sudden drop in Ethereum's price was largely attributed to this whale's substantial sell-off.
With approximately 8,000 ETH (roughly $14.7 million) yet to be sold, this influential whale's future trading activities could potentially exert additional selling pressure on Ethereum's market value. However, it is also crucial to note that crypto markets can be affected by a myriad of factors, including global economic trends, regulatory news and changes in investor sentiment.
This recent event underscores the amount of power and influence whales have on the cryptocurrency market. Retail investors should always stay cautious and track large wallets to avoid unexpected sell-offs like this one.