Even though the past month was filled with fear, uncertainty, and doubt (commonly referred to as FUD) due to regulatory scrutiny from the United States SEC, it appears that the sentiment around the cryptocurrency market is becoming more positive.
In this line, an anonymous whale shows solid support for Ethereum (ETH) as it seems to be accumulating over $125 million of the digital asset since June 8, according to on-chain data reported by Lookonchain.
Since June 8, 2023, the Ethereum whale’s address “0x882…49732” has withdrawn a total of 64,400 ETH ($125M) from exchanges and then staked 36,640 ETH ($71M), accounting for a 57% of the total transaction. Notably, the most recent withdrawal was made this Friday (14), for a 7,300 ETH ($14M).
The withdrawals took place in the last 44 days, as follows — according to data from the Ethereum blockchain on etherscan:
- 20,000 ETH on June 8;
- 6,500 ETH on June 23;
- 8,100 ETH on June 27;
- 15,500 ETH on June 30;
- 7,000 ETH on July 13;
- 7,300 ETH on July 14.
Why it’s important?
These big transactions are important because a whale is usually known for owning a wallet address with high balances of a specific cryptocurrency, whose actions could directly impact the coin’s price or form general sentiment around the digital asset.
By staking the majority of such a valuable sequence of withdrawals, this anonymous whale is sending a clear message that, potentially, there are no plans to sell ETH soon, which is a solid sign of support for the Ethereum network as a whole.
Notably, to become a validator and generate yield, the user needs to invest (or stake) a minimum of 32 ETH, which then are locked into a smart contract. Later, validators are monetarily rewarded for their stake and participation.
As of the time of writing, ETH is being traded for $1,941, according to CoinMarketCap’s price index.
Ethereum (ETH) price chart from June 8 to July 15. Source: CoinMarketCap
Market pivots after a tough month
The first days of the last month (June) were filled with negative sentiments due to the SEC’s lawsuits against two of the biggest crypto exchanges in the United States: Binance and Coinbase.
However, the cryptocurrency market pivoted on Thursday (13th) after an apparently calm week start from Monday to Wednesday. A court decision on the SEC vs. Ripple lawsuit triggered a sentiment change for all crypto assets.
As a result, most altcoins surged as Bitcoin Dominance fell below 50% of the entire market’s capitalization after weeks of BTC receiving all the protagonism on price performance versus its competitors.