- An anonymous user has just reactivated a previously dormant pre-mined address after more than seven years of dormancy.
- The address contains 500 $ETH, worth about $631,500.
- Following the flash crash of the crypto market over the last week, Ethereum appears to be recovering.
The Ethereum chain was launched a little over seven years ago, in 2015, by Vitalik Buterin. It became a success over time when cryptocurrencies and blockchain technology were relatively unknown concepts.
According to a recent Tweet from the blockchain tracking and analytics platform Whale Alerts, an anonymous user has just reactivated a previously dormant pre-mined address after more than seven years of dormancy.
— Whale Alert (@whale_alert) November 15, 2022
According to the tweet and data shared by Whale Alerts, the address contains 500 $ETH, worth about $631,500.
What Are Premined Addresses?
Pre-mining refers to mining (or creating) several coins before releasing said cryptocurrency to the general public. Initial coin offers (ICOs) often use pre-mining to reward the project’s founders, developers, or early supporters.
Ethereum was a proof-of-work blockchain, meaning that the cryptocurrency, Ether, was “mined” and distributed to a group of insiders before the blockchain’s official launch.
The tokens in the wallet were practically worth nothing and are now worth more than half a million dollars (keep in mind that ETH was worth only $0.311 on launch).
ETH Price Spikes 6%
Several new developments surfaced in the wake of the FTX crash last week. First, several crypto holders have rushed to pull their funds (chiefly Bitcoin and Ethereum) from centralized exchanges.
However, Ethereum has done very well for itself over the last day. In the previous 24 hours, the cryptocurrency has risen 6% from a low of $1,214 to $1,284 and has ranged between these values ever since.
The cryptocurrency’s price now sits at $1,2265 at the time of writing and is now up 3% from its intra-day lows.
Following the flash crash of the crypto market over the last week, ETH appears to be recovering. However, concluding that the bottom is in just yet is not wise, especially considering the price still has some solid overhead resistance levels to worry about.
After hitting a $1077 low, Ethereum has started to normalize and has even broken through the overhead $1,200 resistance. So far, the freefall on the cryptocurrency has ended, and Ethereum is now trying to find its footing around the $1,250 zone.
Ethereum is still far below most of its moving averages, as illustrated above, but is showing signs of healthy price action and the ability of its bulls to retake control from the bears.
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