The price of PEPE fell sharply on Saturday to reverse some of its gains earlier in the week. Specifically, this price drop brought PEPE down to $0.00001088, representing a 7.5% drop in 24 hours. While PEPE’s pricing issues are part of the a decline in broader marketsRecent whale movements seem to have made the situation worse.
Specifically, the crypto whale recently dumped a large amount of PEPE tokens for ETH. On-chain data shows the wallet exchanged more than 1.4 trillion ETH PEPE tokens, contributing to downward pressure on the price.
Building Anticipation on the Approval of the ETH Spot ETF
According to on-chain data from TheDataNerd, a notable PEPE whale, known by the address “0x837,” made a significant change by converting more than $18 million from PEPE to Ethereum over the weekend. Such a large breakout is a clear bearish signal for PEPE. These Ethereum funds are then included in the Compound contract, suggesting a long-term investment.
On-chain data shows that the whale has recently invested 300 billion PEPE, worth about $ 3.85 million, on the crypto exchange Binance. With this deposit, the whale suffered a loss of approximately $1.73 million. Interestingly, this was not a one-time deposit.
A whale put it in at the beginning 1.1 trillion PEPE tokens are worth $14.42 million on Binance, which may also be converted to ETH. As a result, this whale deposited 1.4 trillion PEPE on Binance in the last two days.
In addition, on-chain data shows that the whale “0x837” withdrew 1,728 ETH worth 5.86 million from Binance, increasing its collection to 4,374 ETH worth $14.91 million in the last two days.
Whale 0x837 has already changed everything $ PEPE in the middle $ETH.
In the last 3 hours, you have withdrawn 1,728 $ETH (~$5.86M) from #Binance 👉 he collected 4,374 in total $ETH (~$14.91M) during the last 2 days.
Those $ETH they were crucified #Combination. pic.twitter.com/nU5YRUHXXM
— The Data Nerd (@OnchainDataNerd) June 29, 2024
Anticipated Launch of Spot Ethereum ETFs
This whale’s decision to convert all of its PEPE holdings to ETH despite the loss shows a strategic investment decision. This action shows market confidence in Ethereum, which is fueled by momentum Exchange Spot Ethereum ETFs in July
Many market participants drew parallels with the events that took place when Spot Bitcoin ETFs were launched and speculated that Ethereum could see a similar surge. According to Bryan Armour, an ETF analyst at Morningstar, the launch of the Spot Ethereum ETF may not generate the same level of excitement as Bitcoin did, given the difference in market size of both cryptocurrencies.
At the time of writing, PEPE is trading at $0.00001129 and has recovered slightly from Saturday’s decline. However, the meme token experienced a decline of 3.58% and 3.77% in the last 24 hours and seven days, respectively. Ethereum has also fallen 3.2% over the past seven days and is currently trading at $3,390.
Featured image from Reddit, chart from TradingView
