Ethereum’s native token, ETH, has experienced a decline in its price, mirroring Bitcoin’s trend, as the bear market continues to strengthen its grip. This development has instilled fear among investors, resulting in heightened selling pressure on the digital asset. Even Ethereum’s prominent holders, known as whales, are now aligning with the bear market’s sentiment, as they have commenced transferring substantial quantities of ETH to centralized exchanges.
Ethereum Whales Inclined Toward Selling
A Santiment report shared on the X (formerly known as Twitter) platform indicates that Ethereum whales might be considering an exit strategy. The chart, posted by the on-chain data tracker, illustrates a significant movement of 300,000 ETH to the centralized exchange Coinbase.
This transfer occurred in two separate transactions, each involving the transfer of 150,000 ETH. At the time, the value of ETH in each transaction amounted to $243 million, resulting in a combined total of $486 million worth of ETH transferred to Coinbase.
Despite these transactions drawing significant attention, the intentions of these whales remain undisclosed. Typically, when coins are transferred to centralized exchanges, it signals potential sell-offs, especially among large investors aiming to minimize the impact of their sales.
However, Ethereum’s price has remained relatively stable, hovering around its Monday levels. If these whales had intended to sell, such actions would likely have precipitated a rapid decline in ETH’s price.
Furthermore, after the ETH was transferred to Coinbase’s hot wallet, it was subsequently divided into smaller portions of 4,282 ETH each and then distributed to various other wallets. Yet, even this breakdown fails to provide a clear understanding of the initial reasons behind moving ETH to Coinbase.
Bears Dominate as Negative Sentiment Prevails
The recent selling pressure impacting Ethereum’s price did not materialize out of thin air. The Crypto Fear & Greed Index transitioned into the “fear” territory following the market crash, indicating that investors were inclined to sell their holdings rather than inject fresh capital into the market.
For ETH, it has now evolved into a battle between the bulls and bears, as the latter successfully pushed the price below the 50-day moving average. This suggests a prevailing bearish trend for the asset in the short term. However, there is a silver lining.
Historically, when indicators drop to such low levels, they often serve as potential bounce-off points for a recovery. While Ethereum may be poised for further bearish movements in the near term, there is the possibility of another rally on the horizon, potentially propelling its price back above $1,700.
As of the time of writing, ETH is trading at $1,624, marking a 0.90% decline on the daily chart and a 1.31% decrease on the weekly chart.
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