A crypto whale wallet – 0x742, likely liquidated a substantial Ethereum position valued at approximately $21.43 million. This investor deposited 7,240 Ethereum (ETH) into the Kraken crypto exchange at $2,960 per ETH.
The move is intriguing, especially given the proximity to the anticipated launch of Ethereum-based ETFs.
Ethereum Attempts a Price Recovery
According to Spot On Chain, in December 2022, 0x742 had withdrawn 8,240 ETH from Kraken at a much lower price of $1,189. This strategic hold resulted in a profit of roughly $12.83 million, marking a 149% gain over eighteen months.
Apart from the deposit of 7,240 ETH to Kraken, the crypto whale transferred an additional 1,000 ETH to an unidentified wallet.
Read more: Ethereum ETF Explained: What It Is and How It Works
This divestment coincides with a surge of optimism about the pending approval and trading of Ethereum-based ETFs in the US. Analysts such as James Seyffart and Eric Balchunas from Bloomberg Intelligence suggest these ETFs might start trading as soon as next week.
Additionally, Nate Geraci, president of the ETF Store, suggested that ETFs could commence trading within the next two weeks, with a target around July 15. The prediction comes as Bitwise updated its S-1 filing last week.
Geraci explained his reasoning behind the July 15 prediction.
“Most issuers (I believe all but Bitwise) still have to submit amendments on Monday. The final S-1 will then be submitted after that, which needs to happen by Wednesday as I assume issuers don’t want a Friday launch. I think this is unlikely, so I move the timeline to the July 15,” Geraci said.
Notably, crypto whales like 0x742 decided to exit positions ahead of these developments. Investors typically deposit assets into centralized exchanges when they plan to sell and withdraw them to private wallets for long-term holdings.
Therefore, this move might indicate skepticism about Ethereum’s near-term market prospects despite the positive outlook for ETFs. It might also suggest that the crypto whale panic sold after Ethereum hit a low of $2,800 last week.
“From my perspective, the crypto whale’s decision to exit a $21 million Ethereum position might be driven by panic due to a recent price drop and liquidity concerns,” Shubh Varma, co-founder of Hyblock Capital, told BeInCrypto.
Ethereum’s price action has been volatile recently, with a notable dip of about 23% from its peak after preliminary ETF approval news. However, it has shown signs of recovery, forming a double bottom pattern, which suggests potential upward movement.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
If Ethereum can break through the resistance at $3,080, it could climb to $3,350. Conversely, failing to break this resistance might lead to price consolidation in the range of $2,876 to $3,080.
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