A cryptocurrency trader expects ethereum (ETH) prices to decline or slow down in the coming days. This comes after on-chain monitor LookOnChain revealed that more ETH holders are moving coins to centralized cryptocurrency exchanges like Binance and Kraken.
Ethereum prices consolidate
Currently, ETH prices remain in consolidation with reaction points between $1,800 and $2,015 based on the price action of the past two weeks.
According CoinMarketCapETH is down 1.8% over the past 24 hours, trading at $1,908 at press time.
Due to the poor results of the last few days, the weekly performance of the altcoin leader is almost stable against bitcoin (BTC).
Ethereum’s volatility is also falling, with Bollinger Bands, a technical indicator used to measure volatility, appearing to be converging, based on developments on the daily chart.
Ethereum transfers, fee increase and PEPE mania
Last week, Vitalik Buterin, the co-founder of Ethereum, transferred approximately $500,000 worth of ethereum. Moments later, the Ethereum Foundation, a team building the smart contracting network, also moved $30 million worth of coins.
Usually, coin transfers to centralized exchanges are associated with settlement. It remains to be seen if ETH prices will fall in the weeks or months due to the headline sell-off.
The increasing transfers of ETH to exchanges coincide with the increase in gas fees. This event can be attributed to the current craze for meme coins. Fear of missing out (FOMO), pepe currency (PEPE), is the main driver behind high gas rates.
Still, with higher gas fees, more coins are burned as stated after the EIP-1559 update. Ultimately, this will, in the long run, make ETH deflationary.
