This drop coincided with a large deposit of 15,254 ETH into the Kraken exchange by a wallet associated with the Ethereum Foundation.
Ethereum (ETH), which is the second-largest cryptocurrency in the world, went through a huge drop of more than 3.5%, which resulted in its price plummeting below $3,700. After reaching a low of $3,620 during the day, the price of ETH recovered.
Ethereum Foundation Deposits 15,254 ETH to Kraken
A wallet connected to the Ethereum Foundation made a huge deposit of 15,254 ETH, which is equivalent to about $56.1 million, into the Kraken exchange, according to a recent update that was supplied by LooKonChain, a source of on-chain data.
The disclosure of this information coincided with the decline in the price of Ethereum (ETH).This deposit, which occurred just eight hours before the announcement, attracted attention due to the provenance of the ETH in the wallet, which came from both an Ethereum Foundation wallet and another wallet that purchased 200,000 ETH during the Ethereum Initial Coin Offering (ICO).
Whale Alert recently published a report revealing the recent activation of a pre-mined Ethereum (ETH) address that had lain dormant for nearly nine years.
The account is currently holding about $21.9 million. We haven’t seen a reactivation of a pre-mined Ethereum address since June.
Furthermore, in May, two addresses that were quite similar to one another experienced unexpected activity after an extended period of dormancy.
ETH Price Action Ahead
One of these addresses held $325,535 while the other held $5.9 million. Following the approval of spot ETH ETFs in the United States on May 20, the most recent findings from the on-chain data analytics business indicate that the demand for Ethereum has increased significantly on that day.
Since then, the daily acquisition of Ethereum by long-term holders has skyrocketed to an average of 40,000 ETH, which is a huge rise from the average of 5,000 ETH that existed before the announcement.
Additionally, the research indicates a significant increase in the overall holdings of prominent ETH investors, which now stand at 16 million ETH.
This amount represents a significant increase. This amount signifies a significant increase from the level of 15.4 million ETH held prior to the adoption of the ETF, which was at 14.9 million ETH at the beginning of 2024.