Key Points
An inactive ICO participant recently made a move after Ethereum’s (ETH) price crossed the $3,000 mark on February 20th. The participant, dormant for 8.6 years, deposited 1,732 ETH, equivalent to $5.15 million on Kraken.
The participant had initially received 3,465 ETH. This was valued around $10.3 million at Ethereum’s Genesis, with the ICO price at approximately $0.31. This sudden movement could potentially affect Ethereum’s price dynamics in a negative way. It could introduce more liquidity into the market, possibly affecting market sentiment.
Impact on Ethereum’s Market
On the other hand, this deposit could be seen as a display of confidence in Ethereum’s current price levels. It might draw the attention of other investors who see the market as favorable. Yet, there are concerns about potential sell-offs or profit-taking strategies by long-term holders. This is particularly true if the participant decides to liquidate a part of the deposited ETH. This could result in short-term selling pressure, temporarily affecting the price.
At the time of reporting, ETH had dipped below the $3,000 mark, trading at $2,936.98. In the last 24 hours, the king of altcoins’ price had seen a 0.26% decline. Despite the recent correction, the total number of addresses holding ETH had increased, indicating rising interest in ETH.
However, this increase in addresses didn’t seem to particularly benefit ETH’s case. The number of NFT trades happening on the Ethereum network had also significantly dropped. This could negatively affect the overall sentiment.
The decline in NFT trades could be due to addresses opting for alternative networks with lower gas fees, which continues to be a pain point for the network.
