Sleeping Ethereum (ETH) Whale Wakes Up Before Merge

Ethereum’s upcoming merge jostles sleeping Ethereum (ETH) whales awake. One such whale has been dormant for three years. The whale’s wallet sent 145K ETH to various addresses yesterday. The transfer coincided with Ethereum’s recent price surge above 2,000 USD.

Data from Etherscan indicates that the entity bundled the transfers in batches of 5K ETH with some transactions exceeding 10K ETH. Less than one ETH is left in the original wallet. The ETH is worth roughly 275 million USD at 1,900 per coin.

Source: Etherscan

The whale is associated with the Genesis initial coin offering conducted eight years ago. At the time, the number of coins received was around 150K USD. In 2019, the entity transferred ETH coins worth around a million USD for the first time since getting the coins from the ICO event.

With the merge just around the corner, such a transaction caught the attention of the Ethereum community. Some viewed it as a possible exit plan for the whale before the network officially abandons a proof of work (PoW) system for a proof of stake (PoS) engine. Interestingly, most of those transfers went to private wallets, not exchanges where the actual selling would occur.

Even if the entity resolves to sell all the coins before the merge, a 270 million USD selling pressure on the network is unlikely to cause considerable damage to the overall price, considering ETH has a 24-hour trading volume of more than 20 billion USD according to Coinmarketcap.

Apart from a dump, others who commented on the transaction thought that the sleeping Ethereum (ETH) whale is seeking to stake the coins, participate in securing the platform, and earn staking rewards on the PoS-powered Ethereum blockchain. Recently, Ethereum core developers announced September 15 as a possible date for the final destination of a journey that started in 2020.