Ethereum whale dump caused a 10% decline in Ether price, raising anxiety in the cryptocurrency market. Despite these worries, Ethereum supporters remain positive about the network’s future prospects.
A big Ethereum whale dump resulted in a sharp decline in the price of Ether (ETH), raising anxiety in the cryptocurrency industry. This whale, an early participant in Ethereum’s 2014 Initial Coin Offering (ICO), recently sold a large number of ETH.
This results an almost 10% decline in the price since the beginning of October. While many people are concerned about the effects of such big selling, Ethereum supporters remain confident about the network’s long-term viability, particularly when institutional investors resume interest in the asset.
Ethereum Whale Dump Causes Major Price Decline
On October 3, blockchain analytics site Lookonchain announced that an Ethereum whale dump had resulted in the sale of 19,000 ETH, valued at $47.5 million, in just two days. This occurs after the same whale transferred 12,000 ETH (worth $31.6 million at the time) to the Kraken exchange in late September.
This whale, who first purchased 150,000 ETH at Ethereum’s 2014 ICO, has seen their holdings increase in value from $46,500 to roughly $400 million today. However, the recent Ethereum whale dump disrupted the market and resulted in a large reduction in Ether’s price, increasing concerns about further falls.
Ethereum Prices Take a Hit
The Ethereum whale dump coincides with a large drop in the price of Ether. As of October 1, Ether was trading at roughly $2,650, but by October 3, the price had fallen to $2,365, indicating a nearly 10% drop in just three days. The challenging price drop has surpassed the entire cryptocurrency market, which experienced a 2.6% decline in market capitalization during the same time period.
Moreover, the ETH/BTC trading pair dropped to a ratio of 0.039, the lowest since April 2021. Some traders have expressed new fear, uncertainty, and doubt (FUD) over Ethereum’s future as a result of its underperformance.
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Criticism and FUD Surrounding Ethereum
Despite the worries raised by the Ethereum whale dump, many Ethereum supporters are still hopeful about the network’s long-term potential. Ethereum instructor Anthony Sassano ignored the FUD, claiming, “The FUD is never-ending, and most people in this industry don’t actually care about the truth.”
Furthermore, Ryan Sean Adams of the popular cryptocurrency platform Bankless emphasized the good qualities of Ethereum’s ecosystem. He stated that Ethereum has created nine chains with gross earnings of more than $140 million in the last year, highlighting that Ethereum functions as a “federated union of economies with ETH as money.”
Former Sushi CTO Joseph Delong also stated that Ethereum is prepared for future development by prioritizing planned network updates, especially those focused at increasing account abstractions and authentication. These enhancements have the potential to bring the next billion people on board the Ethereum network, confirming its status as a blockchain leader.
Institutional Interest in Ethereum Grows
The Ethereum whale dump has not discouraged institutional investors from becoming interested in the product. On October 2, nine spot Ether ETFs had an inflow of approximately $20 million, largely from BlackRock. This is the highest capital flow into Ether ETFs in a week, following a significant outflow the previous day.
This increase in institutional interest in Ether is important, especially when compared to spot Bitcoin ETFs, which experienced $53 million in withdrawals during the same time period. This trend indicates that institutional investors may be moving their focus to Ethereum, despite the short-term uncertainty generated by the Ethereum whale dump.
The recent Ethereum whale dump has likely contributed to a dramatic drop in Ether’s price, reviving anxieties in the crypto community. While the sell-off caused FUD, with critics criticizing Ethereum’s performance, many supporters are still optimistic about the network’s future.
The Ethereum whale dump may have upset the market, but the network’s recovery and growth potential provide reasons for optimism.
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