On-chain data indicates that some large Ethereum holders, known as whales, might be selling off their assets, and this trend has become more clear with a big increase in whale transactions over the past 24 hours.
Ethereum whales are bearwhales?
Based on the alerts from Whale_Alerts, a whale transaction tracker, around $205 million worth of Ethereum has been transferred to the crypto exchange Coinbase from unknown wallets within the last day.
This is quite rare. 61,819 ETH were sent to Coinbase in several different transactions, five transfers, exactly, rather than a single lump sum.
These five transfers, each averaging 10,290 ETH worth over $34 million, came in quick succession, possibly indicating they were controlled by the same entity. It’s not sure, of course, but very likely.
This big and unusual movement has attracted a lot of attention, with many speculating that these transfers could be intended for liquidation. What else would happen on an exchange?
Playing with price possibilities
The Ethereum price may react to these transfers, and also worth to mention there is bigger volatility nowadays.
The battle between ETH bulls and bears is intense, especially following the launch of spot Ethereum ETFs, as retail investors and traders want higher prices, but big players aren’t arrived yet.
Crypto whales have a substantial impact on market dynamics, because they’re big, and their actions are closely watched by retail traders and analysts.
When large amounts of ETH are moved to exchanges, it often signals a plan to sell, and this can raise selling pressure and pushing Ethereum’s price to lower levels in the short term.
Ethereum right now, in the time of writing is trading at $3,340 and has struggled to stay above the key resistance level of $3,357.
This resistance level has been a strong barrier for bullish investors over the past month, and many thinks large transfers like these to Coinbase likely contributed to the difficulty in breaking through this resistance.
Of course, there is still a bullish sentiment among traders, with many expecting initial breakouts above key order blocks around $3,357 and $3,540. Time will tell.
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