The price of PEPE fell significantly on Saturday, reversing some of its gains from earlier in the week. Specifically, this price decline saw PEPE fall to $0.00001088, representing a 7.5% decline in 24 hours. While PEPE’s pricing problems are part of broader market contractionThe recent whale movement appears to have worsened the situation.
Specifically, a crypto whale recently sold a massive amount of PEPE tokens for ETH. On-chain data shows that a single wallet swapped over 1.4 trillion PEPE tokens for ETH, which contributed to the downward pressure on the price.
Expectations Grow for ETH Spot ETF Approvals
According to on-chain data from TheDataNerd, a prominent PEPE whale, known by the address “0x837,” made a strategic shift by moving over $18 million worth of PEPE into Ethereum over the weekend. Such a large exit is a clear bearish signal for PEPE. These Ethereum holdings were then placed in the Compound protocol, indicating a long-term investment.
On-chain data shows that the whale recently deposited 300 billion PEPE, worth about $3.85 million, to cryptocurrency exchange Binance. With this deposit, the whale incurred a loss estimated at $1.73 million. Interestingly, this was not a one-time deposit.
Whale was initially deposited 1.1 trillion PEPE tokens worth $14.42 million to Binance, which will likely also be converted to ETH. Thus, this whale has deposited 1.4 trillion PEPE to Binance in the past two days.
Furthermore, on-chain data shows that whale “0x837” has withdrawn 1,728 ETH worth $5.86 million from Binance, increasing his accumulation to 4,374 ETH worth $14.91 million over the past two days.
Pisces 0x837 actually swaps all baby inside Ethereum.
3 hours ago, he withdrew 1728 Ethereum (~$5.86 million) from #Binance 👉 He has collected 4,374 in total. Ethereum (~$14.91 million) over the past two days.
Those $ Ethereum It was a bet on #complex.https://t.co/vUBwSf5G90 pic.twitter.com/nU5YRUHXXM
— Data Nerd (@OnchainDataNerd) June 29, 2024
Expected launch of Spot Ethereum ETFs
Whale’s decision to convert all his PEPE into ETH despite his loss indicates a deliberate strategic investment decision. This action reflects the market’s confidence in Ethereum, which is fueled by the potential Launch of Spot Ethereum ETFs In July
Many market participants have drawn parallels to and speculated on the events that occurred with the launch of Spot Bitcoin ETFs Ethereum could see a similar surge.According to Brian Armour, ETF analyst at Morningstar, the launch of a Spot Ethereum ETF may not generate the same level of excitement as Bitcoin did, given the differences in market size for the two cryptocurrencies.
At the time of writing, PEPE is trading at $0.00001129 and has rebounded slightly since its lows on Saturday. However, the meme token has seen a decline of 3.58% and 3.77% over the past 24 hours and seven days respectively. Ethereum has also seen a decline of 3.2% over the past seven days and is currently trading at $3,390.
Featured image from Reddit, chart from TradingView
