Ethereum whale empties its wallet, driving speculation that holders are selling the news.
In a tweet on Monday, WuBlockchain reports that an Ethereum whale from the time of Ethereum’s Genesis ICO after three years of dormancy has become active again, transferring all its holdings to multiple addresses.
“Ethereum Genesis ICO giant whale 0x4bAf012726CB5EC7Dda57Bc2770798A38100C44d is active again after nearly 3 years of dormancy. Since yesterday, a total of 145,000 ETHs have been transferred out and distributed to multiple wallets,” WuBlockchain wrote.
Ethereum Genesis ICO giant whale 0x4bAf012726CB5EC7Dda57Bc2770798A38100C44d is active again after nearly 3 years of dormancy. Since yesterday, a total of 145,000 ETHs have been transferred out and distributed to multiple wallets. Wallet link: https://t.co/hpLujWwxWi
— Wu Blockchain (@WuBlockchain) August 15, 2022
According to WuBlockchain, the whale that obtained 150,000 ETH in Ethereum’s Genesis ICO was last active in July 2019. At the time, the whale transferred about 5000 ETH to Bitfinex when Ethereum was trading around the $219 price point.
Notably, the report is driving speculation that holders plan to sell the news as the Ethereum Merge approaches. One user with the pseudonym Trader WhiteBeard noted, “Sell the news mega dump coming.”
Sell the news mega dump coming pic.twitter.com/EkG4BDIsVp
— Trader WhiteBeard (@SHlROIHI) August 15, 2022
Meanwhile, on Friday, The Crypto Basic reported that Options traders expect Ethereum to see a significant price decline following the Merge. Notably, Glassnode analysts reported that “traders are paying a premium for ‘sell-the-news’ put-option protection post-Merge.”
Earlier in the month, a CryptoQuant analyst had also called for users to exercise caution in the Ethereum markets following the surge in active addresses. According to the analyst, active addresses tend to peak at the top of price rallies when retail traders become scared of missing out.
However, not every analyst shares these pessimistic views. For example, in a recent blog post, BitMex founder Arthur Hayes revealed that he is betting it all on the Ethereum Merge. According to Hayes, Ethereum is still underpriced. Additionally, he doesn’t believe holders would want to sell for a profit post Merge as the asset will become deflationary.
Notably, Lark Davis highlighting the impacts of the reduced Ethereum supply following the Merge, reveals that a whopping $600 million of selling pressure at current prices is taken off the market monthly. Additionally, he notes that shifting to proof-of-stake (PoS) means shifting to a staking economy that sees validators stake their holdings to earn more rewards instead of dumping them for profit. Davis says all of these, coupled with the Ethereum burning mechanism, would make the asset deflationary and potentially create more value for holders.
It is worth noting that the long-anticipated upgrade that would see Ethereum merge with the Beacon chain and migrate to the PoS consensus mechanism is slated for September 15.