A notable investor in Ether (ETH) recently sold many holdings they had purchased in 2016 during a market downturn. The holder has demonstrated a pattern of selling ETH during major market dips, having now conducted three substantial offloads.
The investor, who originally purchased ETH at around $8 in 2016, swapped 14,015 ETH for $22 million USDC in a 15-hour span via decentralized exchange Uniswap. The recent shift took place following a new two-year Ethereum price bottom at $1,412 earlier this week. The on-chain data shows this investor conducted substantial ETH sales throughout significant market declines, including selling 6,630 ETH in May 2022 and 4,035 ETH in June 2023.
The Ether market downturn coincided with its peak at $4000, recorded in December. Despite selling a major portion of their ETH assets, the investor maintains possession of 521 ETH, with a current market value of about $830,000. Market sensitivity suggests this investor made these sales transactions because of continued market uncertainty.
Following the recent dip, Ether has rebounded by 8.2% in the last 24 hours, currently trading at $1,598. The price recovery aligns with a broader market rally, triggered by optimism following U.S. President Donald Trump’s decision to pause tariffs for 90 days. The rebound has also seen a notable increase in trading volume, with a 25% surge to $33 billion. This shift has fueled hopes of sustained upward momentum for ETH and other digital assets.
The broader market recovery, however, did not prevent another large transaction later on Thursday. A separate wallet dumped 7,974 ETH, valued at $11.8 million, at $1,479. It remains unclear whether the two wallets involved in these significant transactions are connected. Despite these sell-offs, ETH's recent price recovery indicates that market sentiment may be stabilizing.
The suspension of U.S. tariff sanctions created trader optimism, which led to positive conditions for digital asset markets. The decision affecting broader financial conditions enhanced investor confidence because it directly impacted financial conditions. ETH market performance demonstrates a constructive market attitude toward risk assets while the cryptocurrency field remains active.
The cautious approach of certain investors through large transactions demonstrates the evolution of the cryptocurrency market, although ETH maintains resilience during monetary downturns. Institutional crypto market participation increases the likelihood of frequent major crypto asset market events that disclose macroeconomic policy impacts on digital asset prices.