The meteoric rise in the price of Ethereum came to an abrupt halt on Saturday when a sizeable amount of the digital asset was transferred to the Binance exchange.
The transfer, which occurred at 1:30 a.m. ET, shocked the market and raised concerns about a possible sell-off, causing ETH to lose a significant portion of its market value. Despite its previous gains, the largest altcoin by market cap now faces uncertainty as investors nervously await further developments.
Ethereum Price Rocked by Sudden Whale Movement
After an extended period of consolidation, the Ethereum price broke out on March 10, and since then the altcoin has been off to an impressive start, leading to a sharp rise in value.
In a bullish move, Ethereum (ETH) broke above the $1,800 mark, securing a significant price gain. The positive sentiment was short-lived, however, as market data reveals that approximately 18,657 ETH was recently transferred to the Binance exchange, raising concerns among investors.
He transaction has cast doubt on the possibility of a possible sell-off, leaving the largest altcoin by market capitalization vulnerable to a decline in value.
Source: Whale Alert
When a whale moves coins, it can also signal its sentiment towards the asset. For example, if a whale sells a significant amount of Ethereum, it may indicate that they believe the price has peaked, or that they have lost faith in the asset’s potential. This can cause panic among other investors, leading to a further fall in price.
At 1:30 am ET on Friday, an unknown wallet, believed to belong to a rich whale, made a transaction on the Ethereum blockchain with a transaction fee of just $1. The impact of this transaction caused ethereum price to decline by 2.53% from its previously reported value of $1,807, and was trading at $1,777 at the time of writing, data from crypto market tracker CoinMarketCap shows.
Although the Ethereum price has pulled back, it still has room to grow before reaching the $2,000 psychological resistance level. Whether or not this happens depends on a variety of factors, including the macroeconomic environment and the ability of the cryptocurrency to maintain its current momentum.
room for recovery
If Bitcoin remains bullish above $27,000 and Ethereum bulls continue to increase their buying pressure, the Ethereum price could resume its uptrend. Adding to the optimism, the Ethereum network has recently confirmed the official launch date of the highly anticipated Shanghai updatescheduled for April 12.
ETH total market cap at $218 billion on the weekend chart at TradingView.com
Additionally, recent disruptions in the banking sector have caused more liquidity to flow into the cryptocurrency market, resulting in a positive net flow of $35.8 million for the Ethereum network.
However, despite the positive developments, the current ETH price has seen a slight decline of 0.05% in the last hour, following a 3.18% gain recorded over the previous 24 hours. However, investors remain optimistic about the potential for the Ethereum price to continue its upward trajectory.
-Featured image from The Daily Hodl
