Ethereum price moves higher, “Whale” pays $2.6M in transaction fees

Ethereum price moves higher, “Whale” pays  $2.6M in transaction fees
Written by:
Michael Harris
11th June, 13:04
  • A mysterious Ethereum “whale” paid $2.6 million in transaction fees when attempting to transfer $130
  • "It could have been a mistake, some form of money laundering or washing," says an analyst
  • ETH/USD consolidating recent gains just below $250, with buyers aiming for $290 next

Ethereum (ETH/USD) has been moving higher in the past few days as the buyers are attempting to break $250 resistance. In the meantime, an Ethereum “whale” paid $2.6 million in transaction fees when attempting to send $130 worth of ETH.

Fundamental analysis: Largest transaction fee ever recorded

In an attempt to send $130 of ETH, a mysterious Ethereum “whale” paid $2.6 million in transaction fees, which amounts to a fee of two million percent. This is the largest transaction fee someone has ever paid to transfer ETH

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The user transferred 0.55 ETH to an address given by crypto exchange Bithumb, while 10,668 ETH was paid in transaction fees to the miners. The transfer was mined by SparkPool, one of the major Ethereum mining pools. The huge transaction fee has been transferred to SparkPool’s address and will be distributed to a large number of miners.

“We are further investigating the incident of unusually high tx fee, and you are welcome to provide clues to [email protected] SparkPool has had the experience of handling similar issues properly. There will be a solution in the end,” SparkPool said.

One of the founders of Ethub and product marketing manager at Set Labs, Anthony Sassano, said the transfer fee could be a mistake or an attempt at money laundering. 

“It could have been a mistake, some form of money laundering or washing. It was mined by SparkPool so they could send that ETH back to the original owner if they wanted to,” Sassano said.

Concerning the person who conducted the transaction and paid the absurd transaction fee, not much is known. Everything we know is that their account previously made transfers to cryptocurrency exchange Bithumb. 

When it comes to Ethereum transaction fees, the users have complete control over it. They can choose how much money they want to pay for transaction fees, and the more they pay the quicker it will be processed. However, there’s no reason to pay $2.6 million dollars.

Ethereum is a fully decentralized blockchain and cannot repeal transactions.

Technical analysis: Buyers attempting to break resistance

Ethereum bulls managed to gain around 20% in the last week of May, pushing the price action above $240. Since, the sellers have been successful in rejecting attempts to break above the $250 mark, which is also a multi-month high for the world’s second-largest digital coin. 

Ethereum weekly chart (TradingView)

As seen in the chart, the descending trend line is causing issues for the buyers. A move above this trend line would pave the way for a test of the 1-year high near $290. A failure to move above $250 will likely result in a rotation lower with the initial support located at $227.

Summary

Ethereum price has stopped near the $250 mark after recording strong gains in the past few weeks. The buyers are now attempting to break this resistance and push the price towards the 1-year high near $290.

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