Main navigation

Ethereum (ETH) Price at Risk? Indicator Raises Concerns of Price Manipulation

Fri, 05/05/2023 - 11:43
article image
Gamza Khanzadaev
Ethereum price manipulation concerns escalate with latest signal
Ethereum (ETH) Price at Risk? Indicator Raises Concerns of Price Manipulation
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

According to recent reports from Santiment, Ethereum's active deposits have reached an eight-month high, signaling a potential increase in ETH volatility. On May 4, the number of unique deposit addresses on exchanges reached 9,193, which is the highest it has been since Sept. 15 of last year.

Ethereum (ETH) Might Target $1,500 Next If This Chart Pattern Plays Out: Analyst

The reasons behind this sudden spike in activity remain unclear, but it is believed that it could be an indication of upcoming increased volatility in the price of Ethereum. This is not the first time that such a surge in activity has been observed, as similar spikes were seen during The Merge in September last year and following the FTX collapse.

However, increased volatility could also lead to potential market manipulation by big players and market makers, who could take advantage of the situation. Such manipulators often use these kinds of events to create psyops, which they can then use to their advantage.

Thus, despite the belief that the increase in the number of deposits on centralized exchanges is a sign of an impending sale of the cryptocurrency, the presented chart shows that the growth in the number of deposits has often been a precursor to further growth in the price of ETH. As such, it remains to be seen where this discrepancy will lead, but it is expected to become clear soon.

ETH to USD by CoinMarketCap

Ethereum (ETH) Whales Goes on Massive Sell-off, Is This Reason for Price Stagnancy?

As of this writing, Ethereum is trading at $1,903 per token. After the price of ETH showed a 14% and 12% rise and fall from April 10 to April 24, respectively, its volatility has decreased so much over the past two weeks that the maximum spread does not exceed $180.

article image
About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.