Ethereum recently breached the $3,000 threshold only to face a swift downturn, paralleling Bitcoin‘s decline. In a remarkable development, a dormant Ethereum wallet from the network’s early days, holding a substantial amount of the cryptocurrency, became active and moved a significant sum to a major exchange.
Unexpected Ethereum Movement Shakes Market
The wallet in question, which had not seen activity for over 8 years, transferred 1,732 ETH to Kraken, totaling a whopping $5.15 million at the time. Initially acquiring 3,465 ETH during Ethereum’s initial coin offering (ICO) at a mere $0.31 each, the wallet’s holdings, ideally, would stand at around $10.3 million today. The sudden reactivation of the wallet and the transfer could signal potential sell-off risks for Ethereum’s market, which hovers above $2,900.
Market Sentiment and Ethereum’s Performance
This old holder’s return to the fray might introduce additional supply and liquidity, potentially swaying market sentiment. Conversely, the move could also be seen as a vote of confidence in Ethereum, potentially emboldening other investors. However, apprehensions linger about the possibility of sell-offs from the long-standing holder, which could exert downward pressure on Ethereum’s price.
Following this incident, Ethereum’s price retreated below $3,000, currently standing at $2,906.32, marking a 3.62% decrease within 24 hours. Despite the drop, the number of Ethereum holders has risen, suggesting a heightened interest in the cryptocurrency.
Conversely, a notable drop in Ethereum-based NFT transactions has been observed, potentially contributing to the cryptocurrency’s struggles. Ethereum’s price dynamics continue to fluctuate as market players digest these latest developments.