Ethereum Whale's $200M Move Sparks Market Crash Fears

A dormant Ethereum (ETH) whale, silent for six years, recently moved 77,736 ETH to Bitfinex before the market crash, sparking interest in the cryptocurrency community. This transaction, valued at approximately $200 million at the time, raised questions about the whale's intentions and the potential impact on the market.

The cryptocurrency market, led by Ethereum and Bitcoin (BTC), experienced a significant downturn, shedding more than $500 billion in net valuation between Friday, February 3, and Monday, February 6. This decline was accompanied by over $2.1 billion in liquidations, surpassing the FTX and COVID-19-induced crypto crashes.

Bitcoin price dropped more than 10 percent in the past two weeks, retesting a crucial support level above $91,000. Ethereum price shed more than 30 percent during the same period, retesting the multi-month support level of around $2,136.

The cryptocurrency market's recent decline can be attributed to several factors, including the onset of Donald Trump's second term and the subsequent trade wars with Canada, Mexico, and China. These geopolitical events triggered retaliation from affected nations and led the crypto market to follow major stock indexes, such as the Dow Futures.

The notable capitulation in Ethereum price was heavily influenced by whales' panic selling. As Ethereum's supply on centralized exchanges surged to a new 12-month peak of nearly 16.2 million, on-chain data indicated that several whales deposited their Ether to different CEXes for sale in the past 24 hours.

The future of Ethereum remains uncertain, with analysts and investors alike speculating on the potential impact of the recent market crash. As the second-largest cryptocurrency by market capitalization, Ethereum's performance will continue to be a crucial factor in the overall health of the cryptocurrency market.