Diamond-hand Whale Deposits Massive 11,639 ETH ($46.37M) to Kraken. Is Price Correction Looming?

Currently, Ethereum has witnessed a huge increase in profit-taking transactions. On December 9, Spot on Chain detected a diamond-hand whale who deposited the remaining of his 11,639 ETH tokens to Kraken. The move, which amounts to $46.37 million at the current market price, has captured the market’s attention.

As reported by the on-chain tracker, this whale in the past withdrew 96,639 ETH from Coinbase at $1,580 in September 2022. The investor later deposited all of the amounts to Kraken at $3,080 between March and December 2024. If these were indeed trades, the investor would have gained approximately $145 million (95% profit) in 2.25 years, Spot on Chain highlighted.

More whales with massive profits seem to be cashing in on $ETH!

8 hours ago, the diamond-hand whale “0x682” deposited the remaining 11,639 $ETH ($46.37M) to #Kraken.

This whale had previously withdrawn 96,639 $ETH from #Coinbase at ~$1,580 in Sep 2022 and later deposited it all… https://t.co/lTOxqp8A6L pic.twitter.com/0Id5dMyLZL

— Spot On Chain (@spotonchain) December 9, 2024

Whale lose patience

Diamond-hand whales are big crypto holders who resist selling their tokens despite inherent price fluctuations. They have a strong belief in the long-term prospect of their holdings. In this case, the Ether whale, whose wallet holds a large amount of Ethereum tokens, surprised the market with the huge transfer.

Of late, large investors, popularly known as crypto whales, increasingly resurface in the market, seeking to make gains amid the rejuvenated price increase. On-chain data shows big transfers of major assets to exchanges. This appears to cause a short-term correction in many assets following weeks of price uptick. Typically, the bull cycle influences big investors to buy assets and later sell them for profit. Although dumping tokens on exchanges might cause price correction, market participants see it as a natural course of events.

Large Ether transactions surge

Ethereum has experienced a steady rise of huge transactions, with weekly volumes hitting $17.15 billion (an increase of over 300%) before settling down to $7 billon currently. This is attributed to increased whale activity, aligning with the current Ether’s price spike. The rise has ignited curiosity about Ether’s price movement and the impact of these transactions.

Typically, the steady increase in the number of big investor transactions indicates increased high-net-worth activity. The rise coincides with Ether’s recent surge to $4,080, showing that some whales could be redistributing holdings or taking profits.

ETH price might see a short-term correction

As highlighted above, such trading activities have an impact on ETH prices. Current on-chain metrics indicate that ETH Exchange Netflow has been positive, meaning investors are depositing a net number of tokens into platforms. The key reason holders transfer their tokens to these platforms is to sell to make returns. However, this trend could cause the asset’s price to become bearish. Ether is currently trading below $4,000 and showing some bearish signs.

The asset is currently trading at $3,940.18, up 7.40% in the last seven days. On-chain data indicates a likely short-term price correction after the crypto’s 35% uptrend momentum over the past 30 days. ETH recently soared above the $4,000 level, prompting concerns that it was overbought.

As its value rises to this key resistance level, the metrics indicate a selling pressure could heighten, possibly causing a fallback before any further upward trend. ETH’s price is displaying a few bearish signs below the $3,922 support. The token could take a bearish momentum if it potentially moves below $3,700.

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