Ethereum Whale Dumping Spree: 71,000 ETH Offloaded in Early October - Here's WhyThe market faced a significant shock at the beginning of October, as large-cap ETH holders, known as whales, continued to dump massive amounts of ETH, casting a shadow over the entire market. According to on-chain data analyst YuYan, several whales recently sold almost 71,000 ETH
Ethereum Whale Dumping Spree: 71,000 ETH Offloaded in Early October - Here's Why
The market faced a significant shock at the beginning of October, as large-cap ETH holders, known as whales, continued to dump massive amounts of ETH, casting a shadow over the entire market. According to on-chain data analyst YuYan, several whales recently sold almost 71,000 ETH. This includes whales who participated in the Ethereum ICO and those who redeemed a large amount of staked ETH from Lido. Why did these whales choose to sell their assets at this time? What exactly is happening in the market?
Whale Dumping Sparks Market Panic
On-chain data reveals that several whales have recently chosen to sell off large amounts of ETH, including:
- Whales who participated in the Ethereum ICO: This whale has already sold 30,000 ETH in the past week. Of the 150,000 ETH received from the ICO, 45,000 (approximately $113 million) have been sold to date. This morning, the whale transferred another 6,000 ETH to Kraken, worth about $14.71 million.
- Another Whale: This whale withdrew 29,414 ETH (worth $74.49 million) from Coinbase at a price of $2,532 at the end of August and completed the sale of the final 7,000 ETH (worth $17.68 million) 8 hours ago. The whale ultimately sold all ETH at a price of $2,605, realizing a profit of $2.3 million.
- Whales redeeming staked ETH from Lido: This whale redeemed 24,000 staked ETH from Lido on September 27 and sold them all over the past four days. They also liquidated their previously purchased 4,980 ETH, for a total value of $76.45 million, making a profit of $2.09 million.
Behind the Whale Dumping
Why are whales choosing to dump large amounts of ETH at this time? The market generally believes this is due to the following reasons:
- Concerns about a lack of short-term bounce in the ETH market: Polymarket data shows a significant difference in market predictions for Bitcoin and Ethereum reaching new all-time highs in 2024. Bitcoin is widely favored, while Ethereum faces lower market expectations.
- Overall economic uncertainty: We have entered a period of US interest rate cuts and the beginning of China's easing of policies. However, this might be a moderate interest rate cut aimed at maintaining economic stability and preventing further recession. Given the overall economic environment, external war factors, and the impact of competing public chains, it's unlikely that a large amount of hot money will flow into Ethereum in the short term, driving prices higher.
- Low probability of short-term rebound in the ETH/BTC ratio: The ETH/BTC ratio has shown a significant downward trend since the beginning of 2024, dropping from a high of around 0.06 to its current level near 0.04. The decline indicates that the value of Ethereum, compared to Bitcoin, has been steadily weakening. Currently, it stands at 0.04032, and it's likely to remain in a "strong Bitcoin, weak Ethereum" short-term market sentiment until the end of the year.
Conclusion
Whale dumping undoubtedly has a significant negative impact on the ETH market, and ETH prices might continue to fall in the short term. However, in the long term, Ethereum's value will still depend on its technological development and the expansion of its application scenarios. The market needs to rationally assess whale dumping behavior and focus on technological development and application scenarios of Ethereum itself to better judge its future development trends.
Here are some of the whale trading addresses:
- 0x35c9BBD1e0dDEadca4118A2378E9B0D1959B79F1
- 0xB98d5c4b464DcAcFB3F8FaD952c9a8A0c39a0fF5
- 0x147593C9875a11e9F4102974fD91fa825AA2eEFE
- 0x28BBBA938bEfa30269a565edF6443656CBBA50e7
- 0xB7EaeF912a558d4C6e514159E994cFfd2ED09108
Note: The above information is for reference only. Please invest wisely.
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