Major Ethereum holders are preparing to sell cryptocurrency en masse

According to Whale Alert, a service that tracks large cryptocurrency transactions, ethereum whales are preparing to sell their ETH holdings as Ethereum approaches the transition to the PoS consensus mechanism.

As it became known, the largest owners of Ethereum are actively moving ETH from their cold wallets to exchanges: 73,840 ETH worth about $ 111 million were transferred from an unknown address to the Huobi exchange. According to Whale Alert, another investor transferred an even larger amount of 260,000 ETH to Binance (worth $ 434 million at the time of the transfer).

According to analysts, ethereum whales have moved their savings from cold wallets to exchanges to be able to sell their cryptocurrency investments in ETH and buy other digital assets, such as bitcoin, when the value of ethereum increases. However, such activity is rather negative — an increase in sales of ethereum can lead to a significant drop in its value if the number of users who want to buy ethereum is not greater than the number of sellers.

Yesterday, the ETH rate rose to $ 1680, thanks to the successful implementation of the Bellatrix hard fork (however, there are some questions about it). At the time of writing, ETH’s value is currently at $ 1534, which is an 8% drop in the price of ethereum overnight.

However, according to CryptoQuant, cryptocurrency investors have no reason to worry as Ethereum is in the highest demand on the market. In August, Ethereum accounted for 40% of the total trading volume on the cryptocurrency market, while BTC grew by about 30%. Also today, it became known that bitcoin’s decline outpaced that of Ethereum: in August, BTC fell by 13.88% and ETH by 7.33%.