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Ethereum Whale Activity Raises Red Flags As Dominance Declines

Ethereum, the second-largest cryptocurrency by market capitalization, has seen its dominance decline slightly, dropping from 16.8% to 15.2% over the past two years.

Despite this modest decrease, Ethereum has managed to maintain relative stability in the ever-fluctuating crypto market.

However, recent whale activity is drawing significant attention, particularly as it coincides with steep price drops.

Over the past month, a giant Ethereum whale has been making substantial deposits to centralized exchanges (CEXs) just before significant declines in ETH’s price.

Notably, the whale moved 25,000 ETH, worth $73.9 million, to Kraken on two separate occasions—each time preceding a sharp drop in price.

On August 20th, the whale transferred 15,000 ETH, valued at $39.7 million, to Kraken when the price was at $2,645. This move was quickly followed by a 2.5% drop in Ethereum’s price. Similarly, on July 25th, the same whale moved 10,000 ETH, valued at $34.2 million, when Ethereum was trading at $3,420, which preceded a more substantial 7.6% decline.

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Whale Still Holds Massive Amount Of Ethereum, Valued At $107 Million

Despite these transactions, the whale still holds a substantial amount of Ethereum—41,639 ETH, valued at approximately $107 million. Remarkably, the whale’s total estimated profit from these trades stands at $131 million, reflecting an impressive gain of 85.9%.

This activity comes at a time when Ethereum spot ETFs are experiencing mixed flows. On August 20th, the total net outflow of Ethereum spot ETFs was $6.49 million. Grayscale’s ETHE ETF saw a significant outflow of $36.99 million, while BlackRock’s ETHA ETF recorded an inflow of $26.77 million, and Bitwise’s ETHW ETF had an inflow of $3.73 million.

The consistent timing of this whale’s transactions ahead of price drops raises questions about market manipulation and whether other traders should be wary of similar moves. As Ethereum continues to navigate these turbulent waters, the market will be closely watching the actions of large holders like this whale, whose moves could signal future price volatility.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: nexusplexus/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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