The price of Ethereum is currently under scrutiny and faces the possibility of a selloff, as a significant investor from the $ETH ICO has liquidated millions of dollars' worth of the cryptocurrency after holding it for several years.
An investor who took part in the project's Initial Coin Offering in 2015 has divested 76,000 units of the digital asset, leading to speculation regarding the implications for Ethereum's price.
This liquidation, occurring after a decade of holding, has sparked concerns within the digital asset market about the prevailing sentiment among key ETH investors.
The ETH ICO Whale Selloff
As reported in an update from @ai_9684xtpa, an early investor in Ethereum acquired each ETH at a mere $0.31 per coin.
This investor has recently concluded a two-week selloff, with the last transaction occurring shortly after the announcement on social media.
The report indicates that 2,000 ETH was transferred to Kraken for a total of $3.66 million. It is important to highlight that this transfer was preceded by several significant transactions.
On April 30, the ETH ICO whale transferred 3,000 ETH to the crypto exchange, generating $5.39 million.
An additional 3,000 ETH was sent to the exchange on May 2, yielding $5.53 million. Three days prior, a similar transaction resulted in $5.39 million.
The initial transaction in this two-week period involved the transfer of 8,000 ETH, valued at approximately $12.74 million, to another wallet.
Smaller transactions, such as 0.01 ETH worth $15.93, were also noted. Another significant transaction included 6,000 ETH, estimated at around $9.55 million.
With ETH priced at $1,834.18 on the day of the final transfer, the long-term holder's strategy proved beneficial.
Such substantial selloffs can often incite panic, particularly when they originate from long-term investors.
Implication for Ethereum Price
Currently, the Ethereum price is experiencing slight bearish pressure. The cryptocurrency has retraced from its earlier peak this year, which exceeded $2,000.
According to CoinMarketCap, the price is currently at $1,831.0, reflecting a 1.72% decline over the last 24 hours.
In addition to the selloff by ICO investors, the activity of large holders indicates that institutional confidence is on the rise.
For instance, in the last three weeks, Ethereum whales have acquired the coin, investing over $1 billion.
However, the Ethereum price charts reveal some signs of weakness. A bearish divergence indicated by the RSI suggests that further corrections may be imminent.
Analysts warn that if momentum does not improve, Ethereum could drop to the $1,400 range, although some remain optimistic about a potential recovery to $2,000 or even $4,000 if market sentiment changes.
The Vitalik Buterin Simplicity Plans
In recent developments apart from the $ETH ICO selloff, Ethereum co-founder Vitalik Buterin has suggested a significant restructuring of the blockchain's framework.
His new proposal seeks to make Ethereum as comprehensible as Bitcoin. He argues that the current system's complexity results in elevated development expenses and heightened security vulnerabilities.
The proposal entails a redesign of both the consensus and execution layers, which includes transitioning to a 3-slot finality and substituting the Ethereum Virtual Machine with a more straightforward model such as RISC-V.
Although this may not have an immediate impact on Ethereum's market price, Buterin anticipates that it could yield long-term advantages and restore confidence in the protocol's future.
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