Today, Ethereum co-founder Jeffrey Wilcke made a bold move that attracted curiosity among crypto market participants. According to data reported by ARKHAM, the prominent whale deposited a whopping $262 million of Ethereum (ETH) tokens into Kraken.
The whale realizes profits after holding
The massive transaction suggests that the investor potentially earned significant amount of profits after holding the ETH tokens for a considerable period.
This move captured everyone’s attention due to the size of the deposit and because it happened during a wider market rally. This investor appeared to have timed the market right when prices continued to move higher.
The massive deposit does not mean that the whale has exited the market. It is rather a strategic move, reflecting a redistribution of the capital across several wallets, according to fresh data posted by Spot on Chain later today.
After an hour following the deposit, the whale transferred these 105,736 ETH tokens worth $262 million from Kraken to 8 new wallets. This not only suggests the whale’s continued confidence in the asset but also indicates a bigger strategy to enhance profitability.
This form of transfer is common among experienced whales who frequently utilize precise timing, exchange access, and deep, decentralized liquidity pools to take advantage of better market movements elsewhere.
This huge withdrawal from the exchange is interpreted as a bullish signal, suggesting the whale is repositioning himself for greater gains in the DeFi market.
What’s next for ETH?
The transfer is a signal of a tightening ETH supply in the spot market. Interestingly, the asset surged 0.9% in the past 24 hours, currently hovering at $2,481, corresponding with the whale’s significant withdrawal.
The investor’s token move may have boosted this surge, backed by the ongoing uptrend phase. His quick action and significant profits act as a reminder of the power associated with strategic moves that can influence assets’ prices.
Analysis shows that Ethereum’s RSI indicator has risen to the 73.1 level, suggesting that the asset is currently overbought, and therefore could be vulnerable to a price correction. Indeed, ETH’s trading charts confirm that the asset is undergoing a consolidation experience, as its price has been down 3.2% over the past week.
Amid this correction, the asset has formed a bullish continuation wedge, indicating that it is in a temporary pause before initiating a potential breakout. The formation of this wedge suggests that the asset is still on track to reclaim its $3k price zone. It could soon trigger a bullish breakout, regaining momentum and possibly breaking resistance levels of $2,619 and $2,718.
