Ethereum Whales Sell $530M in ETH: Potential Impact on Price Movement?
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has seen a modest price recovery recently, with ETH trading at $2366 at the time of writing, showing a 1.76% increase in the last 24 hours.
However, prior to this uptick, ETH was on a downward trend, hitting a low of $2150 in the past week. Over the last 40 days, the altcoin has experienced an 11.09% decline.
Despite the daily gains, ETH still remains significantly below its recent peak of $2820 and 51% lower than its all-time high (ATH) of $4878.
Concerns about a potential sell-off in the market have emerged due to notable whale activities. Whale Alert has reported significant ETH transfers to various exchanges, totaling a staggering $538 million. Exchanges like Kraken, Binance, Arbitrum, and Coinbase have received substantial amounts of ETH in these transactions.
Binance received $188.6 million, Kraken got $127.2 million, while Coinbase and Arbitrum saw inflows of $34 million and $188.6 million, respectively.
Simultaneously, Metalpha, a Hong Kong-based firm, has been actively depositing ETH, adding up to $51.16 million in recent hours and a total of $128.7 million to Binance over the past five days.
These large-scale transactions have sparked interest within the ETH community, as they indicate a potential readiness to sell. If these major holders decide to sell, it could lead to increased selling pressure, resulting in a further decline in prices as the supply on exchanges rises.
While short-term price gains may offer some hope, the recent whale transactions have left the market in a state of uncertainty. The activities of these whales suggest a lack of confidence in the future direction of the altcoin, a sentiment that has been prevalent over the past week.
Furthermore, changes in Ethereum’s ownership structure have seen retail traders holding 47.93% of the market, surpassing the 43.07% controlled by whales. This shift sets the stage for a potential decline, especially if whales decide to reduce their holdings, as retail traders tend to react emotionally to market movements.
Moreover, the spike in the exchange supply ratio indicates a growing supply on exchanges, often signaling a forthcoming price drop as holders prepare to sell.
In conclusion, the recent whale transactions in the ETH market point towards a lack of confidence in the coin’s future price trajectory. If these whales proceed with selling, ETH could face significant downward pressure, potentially dropping to as low as $2114, marking an eight-month low for the cryptocurrency.
