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A large Ethereum whale has once again transferred a meaningful amount of ETH to Binance, renewing focus on whale moves in recent days. The recent transfer saw 4,946 ETH worth $17.2 million in a string of sizeable Ethereum relocations.
Over $423 Million in ETH Sent to Nexo
Thanks to blockchain analysis, the whale was tentatively linked to the crypto platform Nexo. Since December 2nd, wallets related to the Nexo platform have withdrawn 114,262 ETH (around $423.3 million) to Binance, according to data.
“A whale (things related to #Nexo) deposited 4,946 $ETH ($17.2M) to #Binance again in the past hour, Lookonchain, a blockchain analytics firm, observed. Since Dec 2, #Nexo has moved in 114,262 $ETH ($423.3M) at #Binance average price of 3,705.”
Specifically, on Dec. 13, Nexo-related wallets moved 18,000 unstacked ETH (worth over $70.8 million) to Binance. The deposits, which were executed amidst swings in Ethereum’s prices, also serve as an indication of strategic decision-making with regard to market conditions.
Whales Activity on the Rise
This isn’t an isolated event. In the early days of December, an Ethereum whale deposited 22,740 ETH, worth $77.7 million, into Binance. The money was said to have gone to pay off debts in what appears to have been a planned series of actions taken with the help of DeFi platforms such as Spark and Aave. Overall, this whale sent 49,910 ETH worth $170 million to Binance and cashed out $137.8 million in stablecoins.
Panic Selling
Underlining the scale of these transactions, they also don’t seem to signal widespread panic. Analysts say whales are cashing out strategically to pocket profits or to meet other financial commitments. This mirrors a broader trend noted in the Ethereum market over the past month, which shows many large wallets selling during price rises.
Ethereum’s price has been under pressure recently, and it is not able to sustain gains. ETH also failed to hold above $3,200 after gaining close to $4,000, partly due to profit-taking by large holders. Ethereum was trading at around $3,448 at press time, indicating a 1.2% decrease over the last 24 hours.
Other High-Profile Sellers Follow Nexo
Nexo is not the only entity offloading ETH. Similarly, the Ethereum Foundation, one of the most conservative entities in the crypto space, has not been passive. When the token was selling cfor lose to $4,000, the foundation transferred out 100 ETH. In the past year, it has done 32 trades, liquidating 4,466 ETH for a value of $12.6 million, and it has timed many of these transactions right at price peaks.
Moreover, Justin Sun, who is the founder of Tron, has also allegedly gone for a couple of famous sell-offs, which contributes to the high-profile liquidation trend.
What’s Behind the Activity?
A number of things could be behind the increased whale activity. Ethereum’s previous climb to $4,000 gave holders who bought lower prices a clear profit-taking opportunity. In addition, Bitcoin’s pullback from an all-time high of over $108,000 has weighed on the broader crypto market. Being the second largest cryptocurrency, Ethereum has of course felt the ripple effects.
Another potential driver is the need to cover liabilities in the decentralized finance (DeFi) ecosystem. Hence, large moves tend to happen when crypto whales are borrowing against or paying down loans on Aave or MakerDAO, as these coins can be used as collateral.
Ethereum Remains Grounded As It Faces Selling Forces
Ethereum’s price has remained resilient despite the significant outflows. Tested now above the $3,000 level, ETH has proven that the liquidations market is able to digest even large sales without crazy collapses. Analysts consider this a sign of underlying strength bolstered by the sustained interest of retail and institutional investors.
Where does Ethereum go from here?
With the market now digesting these whale movements, attention is turning to the larger questions about their implications for Ethereum’s price direction. Big sell-offs can lead to short-term volatility and considering new strategic moves from major market players.
Anyone in Whales trades in, especially Nexo, the Ethereum Foundation, or Justin Sun. Ethereum price remains resilient despite these developments, indicative of a firm foundation, but whale behaviour remains an important factor in its short-term outlook.
Strategic Moves or Market Signals?
The recent moves made by Ethereum whales are just one reminder of the value of tracking large movements between wallets to assess the sentiment in the market. Whether these moves are purely strategic or potentially suggestive of larger trends provides insight for traders and analysts. Ethereum trades in these octaves and its ability to keep prices stable will be one of the highlights.
Ethereum Whale Sell-Off FAQs and Its Effect on Market
1. The news of the $17 million Ethereum sell-off?
While this particular sell-off reflects strategic profit-taking or debt servicing among large holders and does impact short-term market dynamics, it is not symptomatic of mass panic or a price collapse on the horizon.
2. How much ETH has the Nexo-linked whale sold this December?
According to the crypto movement on the blockchain, the Nexo-connected whale has transferred 114,262 ETH, trading at $423.3 million, to Binance in the month of December—taking advantage of market situations.
3. Why is the Ethereum price stable when whales do mass sell-off?
The strong market fundamentals and continued demand for the third largest cryptocurrency in the world have allowed Ethereum to weather significant sell-offs without major price fluctuation, maintaining resilience above $3,000.
4. Is it only Nexo I am selling ETH?
Yes, but the likes you mention are far from large holders and also show up as having sold ETH in liquidation during recent market conditions alongside whale activity.
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