The cryptocurrency market experienced a surge in activity following Donald Trump’s presidential victory, leading to a significant price jump for Ethereum (ETH). This rally, however, was met with profit-taking by long-term ETH holders, who saw an opportunity to cash in on their substantial gains.
Two prominent investors, identified as whales due to their large holdings, unloaded a total of 33,701 ETH, worth a combined $89.72 million. One of these whales, who had held their ETH since the project’s Initial Coin Offering (ICO) in 2014, sold 25,000 ETH on Kraken, a popular cryptocurrency exchange. This sale alone amounted to nearly $65.67 million. Considering the price of ETH was just $0.311 per unit during the ICO, the investor’s return on investment was a staggering 844,530%.
Meanwhile, another investor, who had been out of the market for 8.75 years, resurfaced to sell 8,701 ETH for $24.05 million in USD Coin (USDC). This transaction left the holder with 2,304 ETH and a profit of $30.48 million, representing a 689x return.
The sell-off by these major holders comes as no surprise amidst the significant price surge in ETH. The second-largest cryptocurrency witnessed a 10% jump in just 24 hours, fueled by the broader market rally.
Data from IntoTheBlock highlights the increased whale activity with a 500% increase in transactions worth over $100,000. While most investors seemed focused on profit-taking, as indicated by positive net flows into exchanges, the inflow rate declined by 91% over the last 24 hours, hinting at a possible shift from selling to holding (HODLing).
Technical indicators like the Moving Average Convergence Divergence (MACD) and other momentum indicators suggest sustained bullish momentum, although the Relative Strength Index (RSI) displays a neutral reading. Despite the profit-taking activity, the price of ETH remains high, trading at $2,848.50, up 10.2% in the last 24 hours. This indicates that the bullish sentiment surrounding Ethereum persists, even as long-term holders take advantage of the recent surge.
