Ethereum Update: $87M Worth of ETH Transferred to Exchange – Potential for Significant Market Sell-Off?
In the realm of cryptocurrency, Ethereum (ETH) has been making waves with the potential to reach significant price levels if the current market sentiment persists. Despite a notable deposit of ETH to Binance, the overall outlook for Ether remains positive.
A recent transaction involving a massive 25,800 ETH, valued at $87 million, caught the attention of the crypto community. On-chain analytic firm Lookonchain reported that a prominent whale transferred this substantial amount to Binance, sparking discussions among investors and traders.
The whale in question had purchased 26,721 ETH from Binance at an average price of $3,457 between May 31 and July 25. Following this, the same whale deposited 26,660 ETH at an average price of $3,376 between July 17 and July 29, raising concerns within the market about the potential impact of such a significant move.
Typically, when notable deposits are made to exchanges, there is a possibility of price fluctuations or market repercussions. However, data related to Total-Value Locked (TVL) and Open Interest (OI) suggests that this substantial ETH deposit may not have a significant effect on the ETH price.
Analyzing Ethereum’s technical aspects, experts point out that ETH is displaying bullish tendencies as it surpasses the 200 Exponential Moving Average (EMA) on both the 4-hour and daily time frames. Furthermore, the Relative Strength Index (RSI) indicates a bullish trend for ETH, with the RSI value remaining below the overbought region.
By scrutinizing the ETH chart through price action and technical indicators, there is a likelihood that ETH could potentially reach levels of $3,600 and even $4,000 if the prevailing market sentiment endures. However, it is essential to note the major liquidation levels at $3,340 on the lower end and $3,410 on the higher end, as per CoinGlass data.
In the event of a shift in market sentiment leading to a drop in ETH price to $3,340, approximately $188 million worth of long positions could face liquidation. Conversely, if the price rises to $3,400, around $87 million worth of short positions might be liquidated, indicating a stronger bullish presence compared to bears in the market.
As of the latest data, ETH is hovering around the $3,380 mark, having surged over 3.5% in the past 24 hours. Despite this positive movement, a 20% decline in trading volume suggests reduced engagement from investors and traders, highlighting the need for continued monitoring of market dynamics.
