Key Takeaways
- Ethereum whales dumped 10,176 ETH worth $28.69 million into Kraken following yesterday’s 6.37% price dip, signaling potential further downside.
- Whale activity often indicates current market direction and can hint at upcoming price momentum.
- Ethereum’s 24-hour trading volume jumped 32.70% to $28.63 billion, reflecting heightened participation from investors and traders.
The fear among Ethereum whales is evident after yesterday’s 6.3% price decline, as a major crypto whale has reappeared after 100 days of dormancy and deposited all its holdings. Today, the crypto tracker Onchain Lens shared a post on X, noting that the whale wallet address 0xd90 has deposited all 10,176 ETH — worth $28.69 million — into Kraken after converting it into ETH.
The massive ETH offload was recorded after yesterday’s 6.37% decline, which followed Japan’s 10-year government bond yield rising to 1.84% — its highest level since April 2008.
However, the post on X shows that the whale withdrew a massive 21,086 ETH worth $7.35 million five years ago, but gradually deposited it back into exchanges. It indicates profit-booking by the whale amid market uncertainty.
Who are Crypto Whales?
Crypto whales are long-term holders (typically individuals, institutions, or entities) who own large amounts of cryptocurrency. Their single transaction can influence the market momentum and overall sentiment.
Whale Transactions and Their Impact on Investors
In the crypto landscape, whale activity often acts as a signal. When an asset is withdrawn from exchanges, it suggests potential accumulation and is considered a bullish indicator, while depositing assets into exchanges signals a sell-off and is viewed as a bearish indicator.
Here, the whale’s deposit comes at a time when the overall cryptocurrency market is falling, which strengthens bearish momentum and may lead to further downside in the future.
Smart investors often follow the footsteps of crypto giants to understand where the big money is flowing, as these whales have the potential to attract significant market attention.
What Retail Investors Can Learn From Whale Transactions?
With today’s deposit, one key lesson for retail investors is that no one can control the market — not even whales or institutions.
Whale transactions also show how smart money reacts during market volatility — often flowing with the current market direction, as the whale did by depositing millions of dollars’ worth of ETH into the exchange.
Additionally, such moves can indicate upcoming price momentum. In this case, the signal is bearish, as the whale offloaded its holdings when the price failed to maintain its upward momentum.
As of press time, ETH is trading at $2,796, down 0.09%. Meanwhile, market participation has increased notably over the past 24 hours, jumping 32.70% to $28.63 billion — indicating heightened activity from traders and investors.
Whale dumping amid bearish market sentiment appears to be a potential sell-off signal, as whale activity is often followed by smart investors and can bring additional downward momentum.
