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The price of Ethereum surged to $4,000 once again and it can’t be a coincidence. Just 6 hours before the price surge, two multisign wallets with a common creator address withdrew their first ETH and staked them. Has some new institution started accumulating Ethereum, maybe. Their unrealized profit grew to $517,754 before coming back to $157,570 as ETH price fell to $3,930.
The Break down
Two multisign wallets 0x23a…dad and 0xc9c…d04 withdrew a total of 4,502 ETH worth $17.54 from Binance. This was the first withdrawal for both the wallets. Interestingly, both these multisign wallets have a common creation wallet 0x7cf…617. The withdrawals were executed between ETH price $3,880 and $3,900. These tokens were then staked to KelpDAO.
With the amount and timing of these transactions, it looks like these actions belong to some institution. It timed the movement of Ethereum perfectly as just 6 hours later, the token reached $4,022. The value of staked tokens rose by 3% creating an unrealized profit of $517k. One thing to keep in mind is that multisign wallets are commonly used by institutions.
The Mysterious Institution
It would not be possible to clearly state if this is some institution or a new fund. The wallets have no history and hence there is no way of tracking it. There are many possibilities.
These addresses might belong to some new fund, or a DAO or even some major investor testing the waters. One of the multisign wallet is 4 days old and the other one is made just 15 hours ago. Even their creator wallet originated 51 days ago.
Correlation with ETH Price Movement
The most interesting part of these transactions is their timing. Were the transactions made based on some analyses as the time aligns perfectly with Ethereum recovery to $4k. Or it was vice versa? Did these transactions fill confidence in the market to push the price up. Whether this is a coincidence or a direct influence, it gives a clear message that the market is sensitive towards significant transactions.
The Market Movement
At the time of writing Ethereum is trading at $3,930, a0.28% drop in the last 24 hours. Before falling the token rose by 2.06% reaching $4,022. The price is facing rejection from upper levels and Moving Average is the first line of defence at the support level around $3,940. RSI is following the price action and has fallen to 53.19, still holding solid. Currently there is no reason for the market to fall down. The rise in trading volume by 11.26% shows traders are showing interest.
What to Expect?
With time, we might discover who was behind this major ethereum transaction but it is sure, after bitcoin, institutions are also getting interested in ETH. The price stands solid near $4k. The wallets staking ETH at this price level shows the confidence big investors have in the crypto. Is this some institution, a new fund, a DAO or some new big player entering the market, we are not sure. What do you think about it, let us know.