Ethereum Price Prediction as ETH ICO Participant Moves $100M After 8 Years: What’s Happening?

Source: TradingView

He ETH price It has risen 0.5% in the last 24 hours, amounting to $1,919 after a long-dormant participant in the Ethereum ICO apparently sold $116 million of the token via Kraken.

ETH is now up 2% in the last seven days and 11% in the last 30 days, and the altcoin is up 60% since the beginning of the year.

It appears that an XRP-led and market-wide rally has helped Ethereum avoid taking too much damage from the sale of previously dormant ETH, though dumping such a large sum of the cryptocurrency potentially doesn’t bode well for the future. nearby. .

But since Ethereum is still one of the strongest cryptocurrencies in the market in terms of fundamentals, ETH will surely go back up sooner or later.

Ethereum Price Prediction as ETH ICO Participant Moves $100M After 8 Years: What’s Happening?

ETH indicators look like the coin could see more gains in the coming days, with its Relative Strength Index (purple) moving above 50 and potentially heading for 60 or higher.

Source: TradingView

This indicates growing momentum for ETH, however the coin will need to reverse the decline from its 30-day moving average (yellow) before there can be any great expectation that it will see some consistent gains.

To be fair, it appears that ETH has finished a mini-correction that began over the weekend, when the market euphoria regarding Ripple’s decision waned a bit.

It is unlikely to fall much further any time soon, as its support level (green) has held up very well over the past week, despite a series of declines.

And while some observers may be alarmed by the news of ETH going dormant, it should be seen mostly as a positive that someone was able to sell over $100 million worth of ETH without there being a massive impact on the altcoin’s price.

The funds in question, around 61,216 ETH, had been held in a wallet address that had been dormant for eight years, since the Ethereum ICO in 2015.

Why they moved now instead of in previous years remains a mystery, however some observers have suggested that although the ETH was sent to Kraken, it was not actually sold.

In fact, someone has raised the possibility that the ETH was sent to the exchange for staking, which is certainly a possibility (as long as the holder is not based in the United States).

And since there has been no overt indication or evidence that ETH has been sold (including a significant drop in price), involvement should not be dismissed as a probability.

Either way, a big sale doesn’t change Ethereum’s status as one of the largest and most valuable cryptocurrencies on the market.

As we have written before, not only Ethereum represents more than 50% of the DeFi sectorbut its move to a proof-of-stake consensus mechanism has made it more desirable as an asset.

On one side, Staking has resulted in more than 24 million ETH being taken out of circulation.making the currency scarcer.

On the other hand, the introduction of fee burning has also caused ETH to become deflationary during peak traffic periods, which means that its overall supply has decreased since September.

This makes ETH much more attractive as an investment, and when combined with its growth as a layer one smart contract platform, it seems that anyone with a diversified cryptocurrency portfolio should own some ETH.

Therefore, the market can expect ETH to continue to make steady gains in the medium to long term, with the altcoin likely to return to $2,000 in the coming weeks.

And by the end of the year, increasingly positive conditions could help it reach $2,500 or even $3,000, ahead of a potential bull market in 2024.