Whales moved $74 million to Ethereum: what ETH holders should prepare for
Date: 2023-08-05 Author: Karina Ziganova Categories: BLOCKCHAIN
August started poorly for Ethereum: on Wednesday, its price dropped below the $1,850 support level. Now the second largest crypto asset by capitalization may face new obstacles due to the withdrawal of ETH from staking and the increased volume of transfers to exchanges.
The price dynamics of Ethereum leaves much to be desired: less than three days have passed since the beginning of the month, and the ETH rate has already fallen by 2%. Key on-chain metrics show a number of bearish signs that could lead to a further fall in the quotes of the second largest cryptocurrency by capitalization.
Mysterious Whale Sent $74M Ethereum to Coinbase
According to tracker Whale Alert, on August 2, the mysterious whale transferred 19,789 ETH, worth about $36.4 million, to Coinbase. A closer look at its transaction history revealed that it deposited another $37 million in Ethereum to the exchange two weeks ago.
Optimistic investors suggested that a major player wants to add coins to staking and take advantage of the passive income opportunity. However, their theory turned out to be wrong: just 24 hours after the transfer, the price of ETH fell from $1870 to $1830.
If the sell-off provokes panic in the ranks of Ethereum holders, an even deeper correction may await the asset.
ETH inflow to staking has dropped significantly
ETH inflows to staking have dropped significantly this week. According to Cryptoquant, on July 28, investors locked 141,600 coins in smart contracts. By the close of trading on August 2, this figure had dropped to 27,648.
The sharp drop in staking inflows indicates that holders do not plan to hold ETH for a long time and are considering taking profits.
Ethereum Price Prediction: Bears Target $1,750
Given the above factors, the Ethereum rate may drop to $1,750 in the near future. However, the 2.94M addresses that purchased 5.78M ETH at an average price of $1,804 will provide some support to the asset.
In the event of a rebound towards $1900, the initiative will again go to the bulls. True, first they will have to overcome the resistance of 5.23 million wallets that bought 10.88 million coins at an average price of $1864.
