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With the broader digital currency ecosystem facing capitulation and mild volatility, Ethereum's (ETH) recovery might hit a snag. This is due to recent activities spotted by crypto transaction tracker Whale Alert. Per the data shared, a whale has moved 13,406 Ethereum to the United States’ largest crypto exchange, Coinbase.
Ethereum sell-off ahead?
Established digital currencies have a higher tendency to experience large whale transactions. While users, or ETH holders, can move funds for various reasons hardly reflected on-chain, movement into an exchange generally connotes a sell-off.
Arman ShirinyanThe 13,406 ETH sent to Coinbase is worth approximately 32.6 million. Though this lone transaction cannot impact the overall Ethereum market, a sell-off can dampen sentiment and force more related sell-offs in the short term.
Over the past few weeks, Ethereum has sustained a sell-off. While most retail sell-offs are untracked, the activities of whale entities remain visible. The Ethereum Foundation (EF) is among the likely top sellers of ETH.
As reported earlier by U.Today, EF sent 2,500 Ether to Bitstamp on Tuesday in what many considered a liquidation attempt. Over the past few months, the Ethereum Foundation has conducted a series of related sell-offs.
In justifying the sell-offs, the organization hinted at the freeing up of funds to meet operational needs.
Pressure on ETH price
At the time of writing, the price of Ethereum has flattened out by 0.14% in terms of growth surge. With a value pegged at $2,437.74, the growth surge over the past week is also flat.
Gamza KhanzadaevHowever, if bearish concerns grow in the short term, bears might take over the coin. Conversely, the coin’s Relative Strength Index (RSI) is pegged at the neutral mark of 51. This implies that the actions of bulls and bears have been canceled out in the short term.
Moving on, investors will keep an eye on Bitcoin whale and price trends and inflows into Ethereum ETF products to gauge the level of interest and risk exposure.
Alex Dovbnya
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov