Diamond Hand Ethereum Investor Begins Massive ETH Sell-Off

Analyzing the timing: what prompted the diamond-handed Ethereum holder to initiate the sell-off?

A huge diamond hand dropping an Ethereum coin in space.
Created by Gabor Kovacs from DailyCoin
  • After eight years of holding, Ethereum Whale starts swapping for USDT.
  • Experts are puzzled about the ETH/BTC pair hitting a 3-year low.
  • If the current demand zone breaks, Ether could dip below $2K.

A dormant whale has woken up to distribute its long-stashed Ethereum (ETH) holdings. Over eight years ago, this Ethereum whale withdrew 16,636 ETH from ShapeShift, a then-popular Swiss cryptocurrency exchange.

Early ETH Investor Goes After $38M Profit

Buying at an approximate price of $5.24, the smart money investor’s Ether stash was worth $87,136 in 2016. Holding until today, this diamond hands player moved all of their ETH savings to a new crypto wallet. They began offloading it for USDT, the most popular stablecoin across markets.

Starting by swapping 437.79 Wrapped Ether (wETH) for USDT at an average price of $2,341, this move preceded Ether’s slump below $2,300. Several seasoned crypto analysts believe there are signs of a further ETH price dip.

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While it’s true that the whale still holds 16.111K wETH worth $36.87M, the Wrapped Ether is likely to be swapped for other assets again. If the whale decides to sell everything now, they’d realize a $38 million profit or 436 times more than they’d originally invested.

Ether’s Dip Below $2K on the Horizon?

The diamond-hands investor sell-off coincided with a 5% daily dip. Even though the largest digital asset, Bitcoin (BTC), also fell over 4% during the same time period, it didn’t prevent the ETH/BTC pair from hitting its lowest point since April 2021.

The three-year low means Ethereum is losing market strength against Bitcoin, dipping below 0.04. This comes amidst allegations that the Ethereum Foundation is selling its ETH treasury funds at a fast pace, even though co-founder Vitalik Buterin refuted these claims, stating that those ETH transfers are regular practice for donations towards biomedical research.

Meanwhile, the ETF market’s calm approach to the issuance of Ether Spot exchange-traded funds (ETFs) added more uncertainty to the future of the crypto’s largest Proof of Stake (PoS) chain. Trading with negative flows for five consecutive days last week, Ethereum ETFs broke the curse with a small gain of $1.5 million on September 13, 2024.

However, veteran crypto traders such as Ali Martinez are anticipating a freefall to $1,800 for ETH if the price doesn’t hold in the support bubble between $2,290 and $2,360. This support cluster holds 1.90 million crypto wallet addresses with 52.30 million Ether.

As of press time, the second largest digital asset is trading at $2,279.85. For the chart analyst’s theory to validate, Ethereum would have to close the day below $2,290, plunging from a 24-hour peak of $2,415 despite a hefty daily trading volume of over $16.7 billion.

On the Flipside

  • Multiple on-chain signals, such as network growth, concentration, and large transactions, are all neutral, indicating indecision in price direction.
  • According to CoinPaprika, the combined Spot order book shows Ethereum buys outsourcing the Ether (ETH) 24-hour executed sales of $597M to $577M.

Why This Matters

Large investor moves often precede an emerging trend, while tracking the wallets of these investors gives valuable insight into timing the market.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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