Ethereum FUD Resurfaces as ICO Whale Dumps Additional $47M

• An Ethereum whale sold 19,000 ETH, worth $47.5M, causing a 10% price drop since October 1.  
• Ethereum’s ETH/BTC ratio dropped to 0.039, the lowest since mid-September.  
• Spot Ether ETFs saw a $20M inflow, driven by BlackRock, signaling institutional support amidst market turbulence.

A significant Ethereum holder has continued to sell large quantities of Ether, sparking concern among market participants. On October 3, blockchain analytics platform Lookonchain reported that an early Ethereum ICO participant sold 19,000 Ether, valued at around $47.5 million. 

Notably, this sale comes after the same entity began offloading assets in late September, with more than 12,000 ETH sold at the time, totaling $31.6 million. The whale obtained 150,000 ETH during Ethereum’s initial coin offering in 2014, worth approximately $46,500 back then, now valued at close to $400 million.

ETH Price Drops Sharply

As the Ethereum whale continued to liquidate Ether holdings, the price of ETH has dropped significantly. Since October 1, the cryptocurrency’s value has fallen by almost 10%, with prices plummeting from $2,650 to an intraday low of $2,365 on October 3. 

Furthermore, this sharp decline has been steeper than the broader crypto market, which saw a 2.6% drop during the same period. Furthermore, the ETH/BTC ratio has reached 0.039, a level not seen since mid-September, further compounding concerns about Ethereum’s performance.

In addition, market observers are closely watching the price movement, with some attributing the decline to increased selling pressure from the whale. Crypto traders have also weighed in, with one prominent trader referring to the situation as an indication of weakened confidence among long-time Ethereum supporters.

Fear and Uncertainty Affecting Ethereum

Consequently, the whale’s selling spree has reignited fear, uncertainty, and doubt (FUD) around Ethereum, which has underperformed this year. Criticism has resurfaced, with some pointing to Ethereum’s lack of significant gains compared to other cryptocurrencies.

Subsequently, social media influencers have added to the conversation, noting that Ethereum seems to be dragging the entire crypto market lower. This sentiment is further amplified by Ethereum’s noticeable price drop in recent days, which has caused renewed skepticism about the asset’s short-term potential.

Despite the growing FUD, Ethereum proponents remain optimistic about the network’s future. Key figures in the space continue to highlight the blockchain’s long-term value, with some pointing to planned upgrades aimed at improving account abstraction and authentication. These updates are part of Ethereum’s broader strategy to attract new users and scale the network. 

Institutional Support Balancing Outflows

However, while the whale’s Ether sales have drawn attention, there have been positive signs of institutional interest. Inflows into nine spot Ether ETFs reached nearly $20 million on October 2, driven largely by BlackRock. 

Consequently, this marked the largest inflow in a week and followed a period of significant outflows. The renewed interest from institutional investors provides some optimism for Ethereum, even as the asset faces mounting challenges.

Additionally, Ethereum educator Anthony Sassano reiterated that Ethereum remains strong, despite the market turbulence. He noted that most of the criticism is rooted in short-term market fluctuations rather than the platform’s fundamental progress. Others within the community point to the network’s ability to generate over $140 million in profit over the past year, which they argue reflects Ethereum’s robust ecosystem.