According to data from CoinMarketCap, the price of Ethereum has decreased by 10.23% in the last seven days in line with negative market movements. This decline in the crypto market was caused by many factors including the growing geopolitical tension in the Middle East and the increase in the liquidation of long positions.
Although Ethereum experienced another rebound in the last day gaining 3.21%, investors remain uncertain about a full price recovery with bearish sentiment dominating the market. Notably, the Ethereum ICO participant has now sold a large amount of ETH reinforcing concerns of a long-term bearish trend.
Ethereum ICO Wallet Continues Selling Spree, Loads 40,000 ETH in Two Weeks
According to data from blockchain analytics firm, Lookonchain, an Ethereum wallet with the address “0xBF4” moved 6,000 ETH worth $14.11 million on the Kraken exchange on Friday. So far, this address has been identified as the first Ethereum investor who received 150,000 ETH worth $368 million in an initial coin offering (ICO) in 2014.
Data from Lookonchain highlights this is the second sale of ETH by “0xBF4” last week after an ICO participant first sold 19,000 ETH, worth $47.54 million on Wednesday and Thursday. Notably, this ETH whale transferred 40,000 ETH worth $101 million as of September 22, holding a balance of 99,500 ETH worth $238 million.
Generally, large token issuances for large holders e.g. whales are interpreted as bearish signals as they indicate a lack of confidence in the long-term profitability of the asset. A sell-off like that seen in “0xBF4” may cause panic selling among small investors resulting in strong downward pressure on the price of Ethereum.
Related Reading: Crypto Capo Returns After 2 Months To Predict Ethereum Drops To $1,800, Is It Time To Go Longer?
108,000 ETH Moved To Trade In 24 Hours
Besides the wallet address “0xBF4”, some investors recently sold a large amount of ETH. According to analyst Ali Martinez, 108,000 ETH with a value of 259.2 million dollars was transferred in the last day. This huge selling activity shows the high sentiment in the ETH market.
Currently, Ethereum is trading at $2,399 following its recent price rally. However, its daily trading volume decreased by 17.48% and is estimated at $14.61 billion. If the bearish sentiment persists, ETH may return to around $2,200 which is its next key price level. However, amid heavy selling pressure, the altcoin could trade as low as $1,600.
With a market cap of 291.40 billion dollars, Ethereum continues to rank as the second largest cryptocurrency, holding a market share of 13.47%.
Featured image from NullTX, chart from Tradingview
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