The crypto market is currently under fire from bears, and coins like Ethereum (ETH) are already starting to feel the heat. Amid the fight for recovery, there have been massive ETH inflows on centralized exchanges, which could mean more struggles for the digital asset in the future.
Ethereum whales move millions to centralized exchanges
Multiple reports from the on-chain whale tracking platform whale alert have shown that the Ethereum whales could be exiting their positions in large volumes. The reports began on Saturday, July 22, when the first transaction was first picked up on the blockchain.
In the first transaction, Whale Alert shows that the whale had moved 15,000 ETH for Gate.io. And at the time, the transaction was worth about $28.28 million. However, this was only the first of many, as the whale tracker would go on to report even larger movements to centralized exchanges.
The next one was a transaction transporting 19,328 ETH worth $36.5 million at the time to Coinbase. In the future, the tracker also reported another transaction of 15,000 ETH ($28.1 million) that moved to the Gate.io crypto exchange once again.
The fourth transaction was one that carried 19,328 ETH valued at $36.12 million, transferred from another unknown wallet to Coinbase. And last but not least, a great ETH transaction with 12,000 ETH ($22.5 million) appeared in the early hours of Monday.
ETH price falls following large whale inflows to exchanges | Source: ETHUSD on Tradingview.com
What do these transactions mean for ETH?
These movements of the Ethereum whales could have negative implications for the ETH price in the future. This is because when crypto investors send coins to exchanges, it is usually because they are looking to sell their coins and take advantage of the great liquidity that centralized exchanges provide.
If this is the case and these whales start selling such large amounts of ETH in one go, then it could significantly affect the ETH price. This could see the altcoin, which is already struggling in the market, fall further as selling pressure mounts.
ETH is already seeing its prices decline, plunging as low as $1,830 in the early hours of Monday before quickly recovering. These sharp declines could have been triggered by the whale sell-off, and if there is not enough demand in the market to absorb this new supply, then the ETH price could return to the low $1,800s once again.
For now, the digital asset seems to be resisting the bears, but it has already lost its footing at the $1850 support. Right now, the next major support is at $1,800 unless the bulls can hold on and recapture $1,900.
