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Multiple Ethereum (ETH) transfers were seen earlier today amid another price dip for the coin. Whale Alert, a prominent crypto and blockchain tracking service, revealed that a massive amount of ETH was shifted in these transactions. The exact nature of these movements still remains a mystery, but it has shaken the community.
Reporting the first transaction, Whale Alert revealed that 14,588 ETH were sent from an unknown wallet to Coinbase, a leading U.S. based crypto exchange. It was worth around $34.7 million. The second transfer also had 14,588 ETH being shifted to Coinbase from another unknown wallet. It was estimated to be valued around $33.8 million.
These two transactions are likely to be potential sales as whales typically send their holdings to exchanges when they are planning to sell them off. However, the third transfer is different from the first two in various respects. Whale Alert revealed that 89,600 ETH were transferred from crypto exchange Binance to Binance Beacon Deposit. That is worth around $208.6 million.
While the other two movements were Ethereum sell-offs, the third transfer is likely an internal transfer from Binance for staking purposes. The Binance Beacon Deposit is an integral part of the infrastructure system of Binance, and it is used for governance functions and staking purposes for the BNB Smart Chain (BSC).
What does it mean for the ETH price?
The first two transfers are likely to have bearish impacts on the price of Ethereum. Sell-offs like these can hamper the price growth in the short term. As of now, ETH is trading at $2,318.58, after a decrease of 1.45% in the last 24 hours. The trading volume also dipped 9.46% during this time, currently to $13.42 billion.
The overall situation is quite negative for the leading altcoin on the market. It is currently down 12.15% in the last month, with investors sitting on the sidelines for an extended period. The macroeconomic scenario is also putting pressure on the crypto market. Consequently, the chances of a price rally are grim for the near future.
Gamza Khanzadaev
Tomiwabold Olajide