Ethereum (ETH) plunged below $3,000, shedding 13% in a week as major holders dumped their coins on exchanges. On-chain data reveals a flurry of significant ETH transfers to trading platforms, signaling growing bearish sentiment.
Arkham Intelligence reported on July 7 that a whale address deposited 7,240 ETH (worth $21.44 million) to Kraken. This investor had amassed 8,240 ETH two years prior at an average of $1,195 per coin. If sold at current prices, the whale stands to pocket a hefty $12.78 million profit.
Another analytics firm, Spot on Chain, identified two “smart traders” who offloaded a combined 13,680 ETH (about $41 million) as prices fell. One trader, smartestmoney.eth, moved all 6,440 ETH ($19.5M) to Binance, booking a $2.65 million loss on this trade but maintaining $20.6 million in cumulative ETH profits. The second whale, inactive for over 18 months, transferred 7,240 ETH ($21.4M) to Kraken, potentially realizing a $12.83 million gain.
Declining interest in Ethereum among investors
These large-scale moves coincide with waning interest from both retail and institutional investors. Santiment data shows declining Ethereum holdings among major addresses, suggesting a broader loss of confidence in the asset.
Adding to the selling pressure, the Golem project has been gradually offloading its ICO-raised ETH. Over 37 days, Golem moved 36,000 ETH (roughly $115 million) to major exchanges. Despite these transfers, Golem still holds a substantial 231,400 ETH, valued at approximately $656 million.
When whales move significant amounts of crypto to exchanges, it often sets off a series of events. The surge in supply can outpace demand, causing prices to drop. Furthermore, such actions may fuel speculation of future price declines, leading smaller investors to sell and exacerbating the price decline.
Crypto skeptic Peter Schiff has recently foreseen a potential drop in Ethereum’s value. Expressing his views on X, Schiff pointed out that Ethereum, currently priced below $2,900 and experiencing a 30% decline from its peak in March, is breaching key support levels. Schiff’s projection hints at a plausible plummet to $1,500, attributing it to the swift sell-off actions of Ether ETF traders.
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