Ethereum Whales Join the Bear Market Dance
As the bear market continues to gain momentum, Ethereum has experienced a drop in the price of its native token ETH, similar to Bitcoin. This has caused fear and anxiety among investors, resulting in a significant increase in selling pressure on the digital asset. Even the Ethereum whales, the large holders of ETH, are now participating in the bear market by transferring substantial amounts of ETH to centralized exchanges.
Santiment Report Indicates Whales Exiting the Stage
According to a recent report by Santiment, Ethereum whales seem to be considering an exit strategy at this time. The report includes a chart from an on-chain data tracker, revealing that whales have moved 300,000 ETH to the centralized exchange Coinbase.
This transfer occurred through two separate transactions, each carrying 150,000 ETH. At the time, the total value of each transaction was $243 million, resulting in a staggering $486 million in ETH being transferred to Coinbase.
Although these transactions have attracted significant attention, it is unclear what the intentions of the whales are. Typically, when coins are moved to centralized exchanges, it suggests potential sell-offs, especially for large investors who aim to minimize the impact of their selling activities.
However, despite the whale activity, the price of Ethereum has remained relatively stable, indicating that if these whales were indeed planning to sell, it would have resulted in a rapid decline in the price of ETH.
Furthermore, after the ETH was transferred to Coinbase’s hot wallet, it was further divided into smaller chunks of 4,282 ETH, which were then moved to other wallets. Yet, even this does not provide a clear picture of the underlying reasons for transferring the ETH to Coinbase.
Bears Dominate with Negative Sentiment
The recent selling pressure on the Ethereum price did not emerge out of thin air. The Crypto Fear & Greed Index had entered the fear territory following the market crash, indicating that investors were more inclined to sell their holdings rather than invest new funds into the market.
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For ETH, the battle is now between the bulls and bears, as the bears have successfully pushed the price below the 50-day moving average. This suggests a bearish momentum for the asset in the short term. However, it is not all doom and gloom.
As of writing, ETH is being traded at $1,624. It has experienced a 0.90% decrease on the daily chart and a 1.31% decrease on the weekly chart.
Hot Take:
The current behavior of Ethereum whales and the negative sentiment in the market indicate the challenges faced by the cryptocurrency. While the selling pressure continues to affect the price of ETH, it is important to closely monitor whale activities and market indicators to gain valuable insights into the future of Ethereum.
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