A previously inactive pre-mined Ethereum address, containing approximately $21.9 million, has become active after nearly nine years of dormancy. This sudden activity could put additional selling pressure on the price of ETH.
ETH Price Faces Volatility Amid Broader Market Correction
The broader cryptocurrency market has experienced a significant downturn, with Ethereum (ETH) also feeling the impact. ETH saw a 3.5% correction, dropping below $3,700 before staging a recovery. During this period, ETH hit an intraday low of $3,620 before bouncing back.
Ethereum Whale Deposits 15,254 ETH to Kraken
According to on-chain data provider LooKonChain, a wallet linked to the Ethereum Foundation recently deposited 15,254 ETH, valued at approximately $56.1 million, into the Kraken exchange. This transaction, occurring just eight hours before the announcement, drew attention due to its significant size and the origins of the ETH involved. The deposited ETH came from an Ethereum Foundation wallet and another wallet that had received 200,000 ETH during the Ethereum Initial Coin Offering (ICO).
Reactivation of Dormant Ethereum Addresses
A report from Whale Alert highlighted the reactivation of the previously dormant pre-mined Ethereum address. This event is notable as it marks the first reactivation of such an address in June. Previously, in May, two other dormant addresses holding $325,535 and $5.9 million respectively, also became active after long periods of inactivity.
ETH Price Action and Future Outlook
According to on-chain data analytics firm findings, demand for Ethereum has surged following the approval of spot ETH ETFs in the US on May 20. Since then, the daily acquisition of ETH by long-term holders has increased significantly, averaging 40,000 ETH per day compared to the pre-announcement average of 5,000 ETH.
Additionally, the total holdings of major ETH investors have risen, now standing at 16 million ETH. This is an increase from 15.4 million ETH before the ETF approval and 14.9 million ETH at the start of 2024.
Conclusion
The reactivation of dormant Ethereum addresses and significant whale movements have stirred the market, potentially influencing ETH’s price dynamics. As the market reacts to these developments, the future price action of Ethereum remains closely watched by investors and analysts alike.
