An Ethereum (ETH) holder, inactive for over five years, has transferred a substantial amount of Ether to the Kraken exchange. Early Tuesday, on-chain analytics tool Lookonchain reported the transaction, involving approximately 39,260 ETH, valued at nearly $90 million. This transfer occurred during the early hours in Asia, marking a significant re-entry of the holder into the active trading scene.
Background of the Ethereum address
Investigations into the history of this Ethereum address reveal an initial receipt of 47,260 ETH in 2017, equivalent to over $11 million at the time. Analysis indicates that the address’s prior transactions are not linked to the cold storage wallets of any known exchange. However, there is a potential connection to an address associated with Cumberland, a trading firm, as indicated by Arkham, another data tool. This association, though unconfirmed, adds a layer of intrigue to the transaction’s nature and potential implications.
Market impact and speculations
The movement of such a large sum to Kraken has sparked discussions among market observers. Typically, transferring assets to an exchange platform like Kraken suggests possible intentions to either sell the tokens for stablecoins or exchange them for other cryptocurrencies. Such actions could introduce increased selling pressure in the market. As of Tuesday morning, Kraken’s market depth for Ether trading pairs exceeded $5 million. A transaction of the whale’s magnitude could sway the market by at least 2%, underscoring the significant impact large holders can have on cryptocurrency prices.
This event has put market participants on alert, as they monitor Kraken and the broader Ethereum market for potential shifts in trading patterns and price movements. The crypto community remains vigilant, awaiting the whale’s next move and its ripple effects across the market.