After 7-Year Dormancy, Ethereum Whale Transfers $3 Million To Crypto Exchange: What's The Strategy?

An early investor in Ethereum ETH/USD transferred over $3 million in ETH to a cryptocurrency exchange on Monday, following a seven-year hiatus.

What Happened: The whale purchased 10,001 ETH at $352 apiece in November 2017, according to on-chain tracking platform Lookonchain. They resisted selling even when ETH’s value soared to $4,878 during the last bull run in 2021.

However, in an intriguing turn of events, the Ethereum OG deposited about $2,000 ETH, worth $3.11 million, to Kraken late on Monday.

It was not immediately known if the investor sold the entire stash. But if they did, they would book a profit of $12.3 million. Notably, this was substantially lower than the peak unrealized profit of $45 million.

Whale activity spiked across the board, as ETH transactions worth more than $100,000 soared over 77% in the last 24 hours, according to IntoTheBlock. Moreover, ETH held by long-term holders fell, signaling that diamond hands were selling.

Notably, the percentage of top futures traders on Binance who are bullish on ETH dropped from 86% to 79% over the last 24 hours, as per data from Coinglass.

See Also: Another Crypto Firm Set To Go Public: Galaxy Digital Foresees Nasdaq Listing Soon After SEC Approves Delaware Move

Why It Matters: This transfer comes at a time when the cryptocurrency market was attempting a rebound from Sunday’s bloodbath, which saw ETH plummet to levels not seen since October 2023.

The bigger picture was still gloomy for the second-largest cryptocurrency as it was down over 14% in a week, and more than 27% in a month.

Price Action:  At the time of writing, ETH was exchanging hands at $1,577.77, up 2.94% in the last 24 hours, according to data from Benzinga Pro.

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