Ethereum price has seen a significant drop this week following a large Ether sale. The unexpected decline has the crypto community concerned about the stability of the world’s second-largest cryptocurrency and the long-term effects of the decline.
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On Monday, October 9, the price of Ethereum dropped following a mass ether swap by the Ethereum Foundation, a non-profit community-driven organization dedicated to enabling better human coordination.
Ether trading on Uniswap, a decentralized crypto exchange platform, saw the price of ETH fall 5% from its daily high of $1,635 to a local low of $1,553 before recovering once again.
According to Arkham Data, the Ethereum Foundation swapped approximately 1,700 ETH worth $2.7 million to a single wallet address that held approximately $400,000 worth of the cryptocurrency and was titled ‘Grant Provider’ by EtherScan.
The specific intentions behind the massive swap have not been disclosed by the Ethereum Foundation. However, the Ethereum Foundation, an organization that holds quite an influential position, regularly swaps large amounts of tokens to fund its operations.
At present, Ethereum has recovered from the initial fall and is trading at a price of 1589.36. The huge decline has left the crypto community worried about the health of the cryptocurrency and whether Ethereum’s price will recover.
ETH price recovers after 5% fall Source: ETHUSD on tradingview.com
ETH whales lose $8.5 billion
The Ethereum Foundation hasn’t been the only big wallet to sell in recent days as other ETH whales have taken advantage of the altcoin’s price. According to crypto analyst Ali Charts on X, ETH whales sold $8.5 billion worth of tokens.
This big sale started in February this year and continued till October. As a result, over 5 million ETH have been sold and redistributed over this 8 month period in whale sales. The analyst also notes that “this selling trend is still continuing with no current signs of a shift towards #ETH accumulation.”
ETH whale dumps 5 million tokens | Source:
Compared to its all-time high of $4891.70 in 2021, the price of ETH has fallen by more than half and is struggling to reclaim the $2,000 mark. However, this could provide a unique buying opportunity for investors who may see prices drop due to the discount on ETH.
Nevertheless, Ethereum has retained its position as the second-largest cryptocurrency in the market with a market cap of $191.5 billion at the time of writing. Over the past day, the altcoin has also seen some recovery, rising to $1,593 as bulls look to retake the $1,600 resistance.
Featured image from Techopedia, chart from tradingview.com
source: www.newsbtc.com
