An Ethereum (ETH) holder has emerged from a nine-year dormancy to transfer their entire holdings to another wallet. This transfer, amounting to 1,960 ETH, equivalent to $5.8 million at current market rates, has sparked speculation regarding the motives behind this action.
The holder, believed to be an early investor who acquired 1,969 ETH during Ethereum’s initial coin offering (ICO) at a price of 31 cents per token, has now moved the majority of their assets. While the purpose of this transfer remains unclear, analysts suggest that profit-taking may be the driving force behind the move. At present, the investor stands to realize a staggering profit of 950719%.
This event is not isolated, as similar instances of dormant ETH being reactivated have occurred earlier in the year. In March, one participant moved their entire stash of 2,000 ETH acquired during the ICO, while in February, another wallet transferred 1,732 ETH to the crypto-exchange Kraken.
Further analysis reveals a correlation between the movement of dormant ETH and subsequent price drops. This observation lends credence to the theory that profit-taking may indeed be a primary motivation for such actions.
At the time of reporting, ETH is trading around the $3,000 mark, showing signs of recovery following a turbulent period where its value dipped by nearly 10%. Additionally, sentiment in the Futures market has shifted notably, with an increase in traders shorting ETH compared to those longing it.
