The substantial $20 million ETH investment by an ICO whale coincides with Ethereum’s price decline. On-chain data, however, suggests that there may be a trend reversal soon.
With its price dropping below $3,400, Ethereum (ETH) is under heavy selling pressure. Presently, ETH is down 4.23% at $3,436 and has a $420 billion market capitalization. Participants in the Ethereum ICO have started selling off their ten-year-old holdings, according to on-chain statistics.
Ethereum ICO whale deposits 5.5K ETH to Kraken
Just hours before there was intense selling pressure on the price of Ethereum, SpotOnChain, an on-chain data source, recently reported considerable activity from an early participant in the Ethereum ICO. The ICO whale reportedly deposited 5.5K ETH totaling $19.3 million to the Kraken exchange.
It’s interesting to note that for the past two days, the same user has sent $10,000 worth of Ethereum to Kraken. The whale had first received 150K ETH in 2015, at the $0.31 ICO price, for a mere $46.6K in total investment value. The whale participant still has 139K ETH total—worth $476 million—split across three wallets despite the recent moves.
Just before the $ETH further plummeted 3hrs ago, an #Ethereum ICO participant deposited 5.5K $ETH ($19.3M) to #Kraken.
Notably, the whale:
• received 150K $ETH in 2015 at an ICO price of $0.31 ($46.6K),
• deposited a total of 10K $ETH ($35.4M) to Kraken in the past 2 days,… pic.twitter.com/fzswTXi3yx
— Spot On Chain (@spotonchain) June 18, 2024
ETH price downside is limited
Over the last few weeks, Ethereum has been trying the patience of investors. The price of ETH has remained drifting since it was unable to break beyond the $4,000 barrier. Thus far in June, the price of Ethereum has dropped by about fifteen percent.
The Ethereum on-chain indicators are still strong in spite of this. There has been a significant withdrawal of 4.1 million ETH from the exchanges during the past 10 days. Only 12 million Ethereum, or 10% of the entire Ether supply, are presently listed on centralized exchanges, according to statistics from Glassnode. Since 2016, the amount of ETH available on controlled exchanges has never been lower.
The introduction of the spot Ethereum ETF and this optimistic on-chain growth might result in significant capital inflows for Ethereum. By July 2, spot Ethereum ETFs are expected to be available for trading, according to Eric Balchunas, a Bloomberg analyst. Therefore, this may be the last decline before the ETF opens for trade and the price of ETH starts to rise again.
#Ethereum is beautifully riding a bullish continuation wave.
Every time it forms a pattern, it turns bullish. We’ve got a bull flag in play right now. pic.twitter.com/DQvztCsFY3
— Yoddha (@CryptoYoddha) June 17, 2024
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Altseason FOMO drops considerably, SHIB, DOGE, XRP crowd sentiment tanks
The anticipation surrounding a possible altseason has subsided, as cryptocurrencies have corrected by 10% to 20%. A possible bottom formation is suggested by the cryptocurrency FOMO drop.
The FOMO has finally subsided for the better after a spike in speculation about a potential altseason and a potential huge surge in the cryptocurrency market. With the exception of a handful like Ethereum, the cryptocurrencies have corrected anywhere from 10% to 20% during the past week.
Altseason FOMO cools down suggesting market bottom
Santiment, an on-chain data provider, spots a noteworthy pattern in the altcoin industry. Its study shows that growing altseason references frequently align with market peaks and bottoms. This may signal a possible market peak as it implies that traders have grown too greedy as interest in altcoins has surged.
Nonetheless, there has been a notable decrease in FOMO (fear of missing out) since the market peaked in March. According to the Santiment data, the fear mongering that is currently prevalent may bring us closer to a market bottom, which would present investors with a big chance.
Furthermore, after the recent price drops, the public sentiment for large-cap cryptocurrencies like Dogecoin (DOGE), XRP, and Shiba Inu (SHIB) has significantly decreased, according to the Santiment data. Santiment points out that patient traders may have a purchasing chance as a result of this shift in opinion.
Investors who have been waiting for the market to calm down may want to consider putting more money into the market as the FOMO levels approach their 2024 lows.
Done expect imminent altcoin bull run
Most altcoins have continued to trade below their highs, even while the price of Bitcoin has been flirting with its all-time high levels. Benjamin Cowen, a well-known cryptocurrency expert, said that anticipation of an impending altcoin boom could be overly optimistic.
He went on to say that unless the US Federal Reserve starts lowering interest rates once more, a big surge is improbable. In the past, cryptocurrencies have consistently produced substantial returns once the Fed lowered interest rates. According to Cowen:
“The decline in the majority of altcoins is mirrored in the falling advance/decline index, echoing the period leading up to the Fed’s rate cut in 2019. This index saw a sharp decline before the Fed initiated rate cuts in July of that year. It’s essential to track these movements because the anticipation of an altcoin season dominating Bitcoin may be premature without a reduction in interest rates by the Fed.”
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Solana memecoin DJT surges 1,450% as rumors link it to Donald Trump’s official token
A recent speculation that DJT, a new meme coin on Solana (SOL), is an official cryptocurrency token from former US President Donald Trump has caused a sharp increase in trading activity and a sharp price hike.
In the event that the report is accurate, it would be the first time a contender for US president has introduced their own cryptocurrency. However, Trump has not yet released an official comment in response to the news as of this writing.
DJT witnesses over 1,000% surge in the last 24 hours
On Monday, The Pirate Wires’ X (Twitter) account tweeted something that sparked the rumors. According to the site, Trump’s son, Barron Trump, is leading the introduction of DJT as his official token.
The thread contained the token’s contract address, which was disclosed by Pirate Wires Editor-in-Chief Mike Solana. However, he then made it clear that he was only relaying information from his sources and had not had a direct conversation with Trump.
The DJT stock ticker, which shares the same name as Trump’s firm, Trump Media and Technology Group, went into a frenzy after these tweets. Data from DEX Screener indicates that around 22:30 on June 17, DJT briefly had a market value of more than $5 million.
Nevertheless, as of this writing, its market capitalization is only $794,990. At $0.0007990, DJT is currently trading at a 1,451% gain over the previous day.
Discussions in the cryptocurrency community have been triggered by this revelation. Delphi Digital co-founder Tommy Shaughnessy cautioned. He said DJT may be a fraud and that the Pirate Wires account might have been hijacked.
Shaughnessy also pointed out a few warning signs with the DJT token. These consist of KuCoin’s financing, the absence of a closed liquidity pool, and the large concentration of tokens owned by the top owners.
“Trump doesn’t want to be the first to take credit or tweet about it? No shot. I lean scam,” Shaughnessy wrote.
So the new $DJT Coin
– LP is not locked
– Funded from Kucoin
– Not a standard contract
– Single source pirate wires
– Top owner concentration 67%
– Build the wall to prevent selling
– Trump doesn’t want to be the first take credit or tweet about it etc? No shot.I lean scam
— Tommy (@Shaughnessy119) June 18, 2024
Bubblemaps, a blockchain data provider, released its on-chain study. According to their assessment, one cluster has 67% of the DJT supply.
Moreover, 43% of the supply is held by Raydium Concentrated Liquidity, according to Bubblemaps. The remaining 46% is held by one cluster, which has made large transactions to 140 wallets.
Some people in the cryptocurrency sector are skeptical yet think DJT might be an official token from Trump. They contend that Trump’s possible tactic of directly holding the supply and selling little quantities is consistent with the token’s distribution. It is acknowledged, nevertheless, that Trump would likely prefer a lower, more expensive supply, which makes the token quantity of 10 billion odd.
There are presently more Trump-inspired meme coins available on the market, such as MAGA and TREMP. These meme currencies have skyrocketed in value, especially since Trump has been endorsing the cryptocurrency sector in talks.
The DJT token is still a popular subject in the cryptocurrency industry even if the veracity of this allegation is still unknown. The truthfulness of the Trump rumors and the community’s reaction will determine whether it crashes like other celebrity meme currencies or maintains its value.
