The Ethereum market is extremely active at the moment because a long-dormant whale investor recently returned and sent a lot of ETH to the Kraken exchange.
This action has led to speculation about possible price changes, but overall market trends show that things are more complicated than that.
The investor, who famously took part in Ethereum’s 2014 Initial Coin Offering (ICO), recently deposited 1,069 ETH worth about $3.56 million onto Kraken, according to information from on-chain analytics company Spot On Chain.
Such transfers to exchanges usually mean that someone may wish to sell, which could have an effect on the price of ETH.
Ethereum Dencun Upgrade Impact
It is intriguing that this whale bought 12,566 Ethereum tokens in the 2014 Ethereum ICO, when each coin was only $0.30.
The most recent transfer is only a tiny portion of what they have, but the sale price of over $3,300 per ETH indicates that the early investor earned an enormous amount of funds.
There may be doubts about a sell-off, but major on-chain data reveals a trend that goes against that. According to blockchain analytics business IntoTheBlock, $4 billion worth of ETH has left cryptocurrency exchanges over the last three months.
It indicates that a great deal of investors are buying ETH, possibly because they think the price will continue to go up in the future.
At the same time , Ethereum successfully implemented the Dencun upgrade in March 2024. This upgrade was meant to fix scalability problems like high transaction fees and slow working times.
There are early signs of favorable developments to come, with an abundance of activity on the key positive rollups (Layer 2 scaling solutions) after the upgrade.
Transactions per week reached a high of 32 million, which suggests the network is being used more. Gas costs have been going up lately, but they were significantly reduced on many Layer 2 solutions after the upgrade.
The whale’s sale, the general trend of accumulation, and the Dencun upgrade’s effects on network activity make it challenging to make short-term forecasts about the Ethereum market.
Even though the whale’s sale could cause prices to drop, the overall trend of accumulation indicates that people are still optimistic. Also, the fact that the Dencun upgrade cut down on transaction fees and increased network use may give investors even more trust.
