A significant Ethereum (ETH) whale’s recent transfer of a large amount of tokens raises caution among crypto traders. This transfer coincided with a 3% weekly gain in ETH’s price. The transfer could potentially indicate the anticipation of further price gains for ETH, but it is important to note that such big whale transactions often generate fear, uncertainty, and doubt (FUD) as they could imply selling pressure. Consequently, this might lead to a short-term plunge in Ethereum’s price.
According to data from Etherescan, the whale transferred 8,000 ETH, equivalent to over $13 million, to Binance. This transfer, combined with the whale’s previous transactions, amounts to a total of 12,000 ETH sent to the exchange within the past three weeks. The whale’s wallet currently holds a balance of 10,902 ETH, along with holdings of 57 other tokens.
The timing of these whale transfers raises questions about whether there is an anticipation of a broader crypto market selloff in response to the speech by US Fed Chair Jerome Powell following the Federal Open Market Committee (FOMC) meeting on September 20, 2023. If Powell’s speech continues to sound hawkish, considering the US Fed’s focus on maintaining the 2% inflation target, it could set the tone for upcoming FOMC meetings in November and December 2023. This, in turn, may lay the groundwork for potential rate cuts in 2024.