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A massive Ethereum ($ETH) whale, dormant for an extended period, has suddenly sprung to life, transferring 10,000 $ETH in a single transaction.
According to Lookonchain, a giant whale woke up after three years of dormancy when the price of $ETH recovered above its pre-dump level and deposited 10,000 $ETH worth $38.5 million to Bitfinex at an average price of $3,850.
The $ETH price has recovered beyond the pre-dump level at $3,865!
— Spot On Chain (@spotonchain) March 6, 2024
Gigantic whale 0xd98 woke up after 3 years of dormancy and deposited 10K $ETH ($38.5M) to #Bitfinex at $3,850 ~50 mins ago.
The whale withdrew 110K $ETH from #Bitfinex at only $1,386 ($153M) on Jan 21, 2021;
And… pic.twitter.com/e231NdqctJ
The Ethereum price sharply fell on March 5 to a low of $3,205 from a high of $3,829. Ethereum's price is currently recovering alongside the overall cryptocurrency market. Depositing crypto assets on exchanges signals a decision to sell, but withdrawals may indicate buying.
According to Lookonchain, the whale purchased 110,000 $ETH from Bitfinex on Jan. 21, 2021, for only $1,386 (worth $153 million at the time); the whale still owns 100,000 $ETH worth $385 million. The expected total profit from his $ETH investment is $270 million (+177%).
This sizable movement of 10,000 $ETH to Bitfinex, worth millions of dollars, piqued the interest of traders, investors and experts alike.
One of the first concerns among market participants was whether this move signaled a significant change in the whale's investment strategy or an indication of a potential sale of the whale's holdings, which have 100,000 $ETH left.
Whales may perform transactions for a variety of reasons, such as portfolio rebalancing, profit-taking or strategic moves within the cryptocurrency ecosystem; however, the exact reason for the large $ETH whale's move remains unknown.
$ETH price action
Ethereum saw profit booking at a high of $3,829 on Feb. 29, but buyers quickly bought the dip.
The bulls are nearing the crucial $3,900 level: $ETH is now trading up 5% in the last 24 hours at $3,881, having reached intraday highs of $3,897. If they succeed, Ethereum might enter the second leg of its rise, surging above $4,000 and eventually $4,200.
The upward-sloping moving averages indicate that bulls are in charge, but the RSI has been in the overbought zone for several days, raising the chance of a short-term drop. The immediate support on the downside is $3,300, followed by $3,205.