March 23, 2023

$813 Million Worth of Ethereum Up for Sale as Asset Falls Under $1,500

A tracker that monitors whale activities on the blockchain and gives an alert on large deals of crypto assets has reported the movement of Ethereum tokens in the course of the past 24 hours. The tracker also noticed that there were just little breaks in between each of the transactions that saw the movement of well over 500,000 Ethereum tokens.

Huge Ethereum Movements

It was reported that about half of those tokens were moved into an undisclosed crypto wallet. Speculations are that they will later be moved to Binance where they will be sold. This comes barely a day after the Ethereum Merge was completed.

ETH/USD price chart. Source TradingView

The Ethereum Merge had been in the pipeline for a long time after some delays and postponement due to technical difficulties encountered by developers. The Merge was the process of moving the Ethereum network completely from the proof-of-work mechanism to the proof-of-stake.

The promise of the new proof-of-stake mechanism includes better scalability and security for Ethereum. Importantly, running Ethereum would now become more energy-efficient because mining will no longer be needed to generate new Ethereum blocks. Rather than miners, there would now be validators who would validate any transaction made on the blockchain.

But while the Merge was finalized on Thursday, the price of Ethereum did not quite live up to the expectations analysts had of it. Rather than increasing in price value, the asset’s price began to decline sharply. According to analysts, what followed was a sell-the-news situation as holders began to sell off their holdings. 

What Might the Coming Days Bring?

At least 547,875 Ethereum tokens were withdrawn by unknown crypto wallets. The largest transfer was a movement of 240,099 Ethereum tokens worth some $357,283. They were sent into Binance, very likely for sale. The remaining transfers were said to have shifted about 100,000 tokens each.

Ethereum’s price has continued to fall since the Merge was concluded on Thursday. As of the time of this report, the world’s second-largest crypto asset has lost more than 10% of its value as it sells for $1,442. Analysts began to talk about the Merge being already priced in when the price plunge began and they saw it as merely selling the news.

While the Merge was still expected, some members of the Ethereum community were not comfortable with the movement to a proof-of-stake protocol. Some developers, therefore, began working on ways to fork the original Ethereum code base to create a parallel Ethereum still on the proof-of-work mechanism. The coming days should give more information about them.

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