In what could be a huge sign of caution for crypto traders, a big Ethereum (ETH) whale has just transferred a huge bag of tokens, at a time when the cryptocurrency registered a 3% weekly gain. Does the transfer mean anticipation of further price gains for ETH?
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Big Whale Transfer; ETH Dump Ahead?
Big whale transactions like these are generally associated with fear, uncertainty and doubt (FUD) as the transfer to crypto exchange could mean the whale is selling the tokens. Hence, this could result in Ethereum price plunge in short term.
Earlier, data on Etherescan showed that the whale made a transfer of 8,000 ETH worth over $13 million to Binance. This transfer, along with the whale’s previous transactions, add up to a cumulative 12,000 ETH to the exchange in the space of last three weeks. His wallet address currently has a balance of 10,902 ETH, among holdings of 57 other tokens.
FOMC Decision At Play?
The timing of the whale transfers raises the question on whether there is anticipation of a wider crypto market selloff in response to US Fed Chair Jerome Powell speech following the Federal Open Market Committee (FOMC) meeting on September 20, 2023. Such a scenario could likely play out if Powell speech continues to sound hawkish, considering the US Fed’s priority on maintaining the 2% inflation target. The Fed Chair’s comments may set the tone for the upcoming FOMC meetings in November and December 2023, which could in turn lay the foundation for potential rate cuts going into 2024.
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