- Wallet reactivation coincides with a U.S. jobs report, affecting trading and concerns over interest rates.
- Rapid liquidation of $49 million in Ether positions highlights the impact of large holders selling their assets.
A dormant Ethereum address, inactive for nearly nine years, has recently become active, creating ripples in the market. This address holds 6,000 ETH, valued at approximately $21.9 million. Its reactivation coincided with significant global market changes and heightened volatility in Ethereum trading.
💤 💤 💤 A dormant pre-mine address containing 6,000 #ETH (21,962,887 USD) has just been activated after 8.9 years!https://t.co/HlrVyVZ7D6
— Whale Alert (@whale_alert) June 7, 2024
This reactivation follows a pattern observed in recent months where early Ethereum addresses, part of the pre-mine phase, have become active again. The movement of this particular wallet was first recorded in June. In May, two other similar addresses, each containing large amounts of Ethereum, also reactivated. These instances suggest that large holders, often referred to as ‘whales,’ might be responding to current market conditions.
The reactivation of this wallet happened when Ethereum’s price was $3,642. This event closely followed a stronger-than-expected US jobs report, which indicated a robust US economy and reduced the likelihood of imminent Federal Reserve rate cuts. Consequently, this has led to increased trading activities and concerns about possible further rate hikes.
Recent trading data shows a 31.33% rise in ETH’s 24-hour trading volume, now exceeding $18 billion. Such increases in volume often attract the attention of both retail and institutional investors, who speculate on the whale’s next actions.
Analysts are keeping a close watch on these developments, as they could signal further selloffs or potential market recovery, depending on the whale’s subsequent moves and broader market reactions.
From a technical standpoint, Ethereum’s recent price behavior indicates a consolidation phase. The price encountered resistance around the $3,967 level and has since hovered near $3,690. A long red candlestick highlighted a substantial sell-off, breaking through the middle and lower bands of the Keltner Channel. This suggests strong sell pressure at higher price levels.
The Relative Strength Index (RSI), currently at 54.59, has fallen from previous highs, indicating weakening buying momentum. This metric is crucial as it reflects an increasing tendency toward selling while the market remains neither oversold nor overbought.
If Ethereum stays above the $3,600 support level, it may stabilize. However, breaching this threshold could lead to further declines.
As the market watches closely, the actions of this reawakened Ethereum whale will likely continue to influence trading dynamics and investor sentiment in the coming days.
