The Ethereum meltdown is only about two days away according to the difficulty setting, and sentiments around ETH during this time have peaked. Most of this has been bullish, but a few things that have happened in the market have started to trigger negative sentiment from investors. For the most part, these have been large whale transactions moving to centralized exchanges, raising fears that massive landfills could be down the road.
Ethereum Whale transactions increase
Before the Fusion, Ethereum whale activity has been on the rise. The most notable of these have been the big transactions that have moved ETH to centralized crypto exchanges like Binance. Investors have naturally begun to worry whether these transactions were random or a coordinated dump effort.
The first transaction that drew attention was a total of 150,811 ETH that was moved from one unknown wallet to another unknown wallet, which was later identified as being moved from the OKEx exchange to Binance. At the time of the transaction, the dollar value of the transaction was $259.78 million. While this would not have been a big deal on its own, other large transactions to centralized exchanges would quickly follow.
Another 29,879 ETH worth $51.47 million was then transferred from an unknown wallet to the OKEx exchange. The following transaction brought 119,515 ETH worth $207.6 million from an unknown wallet to the Binance exchange.
22,397 ETH worth $38.56 million was then transferred from Bitfinex to an unknown wallet. While another large transaction of 37,499 ETH worth $64.57 million was transferred from one unknown wallet to another unknown wallet. All of these transactions took place within an hour, leading to rumors of a dump after the Ethereum merger is complete.
ETH trading below $1,600 | Source: ETHUSD on TradingView.com
Are whales dumping ETH?
These large transactions transporting massive amounts of ETH to centralized exchanges paint a bearish picture for the digital asset in the short term. Now, the Ethereum Merge has generated a lot of buzz, but it’s also starting to look like another “buy the rumour, sell the news” event.
If this is so, then the price of ETH is likely to be dumped by these big whales divesting after the Merger. A large amount of ETH was also accumulated because investors wanted to take advantage of the ETH airdrops that would come from hard forks. However, once the Merger is complete, there will be no need for these investors to hold onto their ETH, and many will likely dump them.
It should also be noted that these are the transactions that are tracked on centralized exchanges. Others choose to go the centralized route, where they will likely download as well. However, centralized exchanges offer the most liquidity for such large transactions.
To be better prepared, investors should keep an eye on the ETH charts after the Merger and make sure they have proper risk management in place for events that are especially popular like this one.
Featured image from The Cryptonomist, chart from TradingView.com
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