Ethereum ICO participant offloads 6,000 ETH as bearish sentiment strengthens.
According to data from CoinMarketCap, the price of Ethereum has fallen 10.23% over the past seven days, in line with the overall negative market movement. This cryptocurrency market downturn is due to various factors, including heightened geopolitical tensions in the Middle East and increased liquidation of long positions.
Ethereum experienced a slight rebound last day, rising 3.21%, but investors remain uncertain of a full price recovery due to widespread bearish sentiment in the market. In particular, Ethereum ICO participants have now sold significant amounts of ETH, heightening concerns about a long-term downward trend.
Ethereum ICO Wallet continues sales streak, offloading 40,000 ETH in two weeks.
An Ethereum wallet with the address “0xBF4” moved 6,000 ETH worth $14.11 million to the Kraken exchange on Friday, according to data from blockchain analytics firm Lookonchain. To date, the address has been identified as an early Ethereum investor who acquired 150,000 ETH worth $368 million through an ICO in 2014.
According to data from Lookonchain, this is the second ETH sale by “0xBF4” in the past week, after the ICO participant first sold 19,000 ETH worth $47.54 million on Wednesday and Thursday. Specifically, this ETH whale has transferred 40,000 ETH worth $101 million since September 22nd and has a balance of 99,500 ETH worth $238 million.
Large token offloads by large holders, such as whales, are generally interpreted as a bearish signal indicating a lack of confidence in the long-term profitability of the asset. Selling like the one seen at “0xBF4” could trigger panic selling from smaller investors, creating stronger downward pressure on the Ethereum price.
Related Read: Crypto Capo Returns After Two Months to Predict Ethereum Fall to $1,800 Is it time to go long?
108,000 ETH moved to exchange in 24 hours
In addition to the wallet address “0xBF4”, other investors have recently sold large amounts of ETH. According to analyst Ali Martinez, 108,000 ETH worth $259.2 million was transferred to the exchange in the last day. This massive selling activity indicates heightened sentiment in the ETH market.
Ethereum is currently trading at $2,399 after a recent price rise. However, daily trading volume decreased by 17.48% and was valued at $14.61 billion. If bearish sentiment persists, ETH could return to the next important support price level of around $2,200. However, amid massive selling pressure, the altcoin could trade as high as $1,600.
With a market capitalization of $291.4 billion, Ethereum continues to be the second largest cryptocurrency with a 13.47% market share.
Featured image by NullTX, chart by Tradingview
