Ethereum is experiencing a decline in the price of its native token, ETH, parallel to Bitcoin, as the bear market continues to gain momentum. This has sparked fear among investors and led to high selling pressure on the digital asset. Even Ethereum whales are now dancing to the bear market’s tune as they have started to send large amounts of ETH to centralized exchanges.
This was revealed in a recent Santiment report published on the X platform (formerly Twitter). The chart published by the on-chain data tracker shows that whales have transferred 300,000 ETH to the centralized exchange Coinbase.
The transfer was made in two transactions, each consisting of 150,000 ETH. At the time, each of the transactions brought a total of $243 million worth of ETH to the exchange. In total, a combined $486 million worth of ETH was transferred to Coinbase through both transactions.
Although these are closely observed transactions, there is no evidence of what the whales intend to do. Usually, the movement of coins towards centralized exchanges indicates a sell-off, particularly for large investors who do so to minimize the impact of their selling.
However, the price of Ethereum is still close to Monday’s level, and if these whales wanted to sell, such activities would have resulted in a rapid decline in ETH price.
Furthermore, once the ETH was transferred to Coinbase’s hot wallet, it was further divided into smaller pieces of 4,282 ETH, which were then moved to other wallets. But even this does not provide a clear picture of why the ETH was transferred to Coinbase in the first place.
The selling pressure that Ethereum has been experiencing and the price decline in recent times did not come out of nowhere. The Crypto Fear & Greed Index had moved into the fear zone after the market crash. This meant that investors were more inclined to sell their holdings rather than bring new money into the market.
For ETH, it has now become a battle for the bulls as the bears have managed to pull the price below the 50-day moving average. This indicates a short-term bearish momentum for the asset. However, it’s not all bad news.
When indicators have dropped so low, it usually serves as a starting point for a recovery. Even though ETH may expect further downward movement in the near future, the digital asset could be on the verge of another recovery, potentially pushing its price above $1,700 once again.
At the time of writing this article, the ETH price is changing hands at $1,624. It has decreased by 0.90% on the daily chart and 1.31% on the weekly chart.
Overall, the Ethereum market is experiencing a bearish trend, with large transactions from whales causing uncertainty among investors. However, there is still hope for a potential recovery in the future. Investors will need to closely monitor the market and pay attention to any further developments to make informed decisions.