After a relatively quiet start to the week, ethereum price appears to have returned to some of its early December promise. However, the latest on-chain revelation shows that the “king of altcoins” could face some uncertainty in the coming weeks.
A large amount of eth has hit centralized exchanges in recent days, causing these platforms' ethereum balances to surge.
200,000 eth sent to exchanges in four days: what's next?
In a post on Platform X, a crypto expert revealed that investors have been moving massive amounts of ethereum to centralized exchanges in recent days. This on-chain revelation is based on the “Balance On Exchanges” metric from data analytics platform Glassnode.
In the last 96 hours alone, approximately 200,000 $ethvalued at around 460 million dollars, have been transferred to known crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#crypto change wallets.
Such a substantial increase could indicate the next ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#ethereum price volatility. pic.twitter.com/N09a0NZLvR
—Ali (@ali_charts) December 22, 2023
According to Glassnode data, around 200,000 eth (worth over $460 million) have been transferred to well-known cryptocurrency exchange wallets in the last four days. When most cryptocurrencies are sent to centralized exchanges, it usually suggests that some investors might be looking to offload their assets.
<img decoding="async" class="aligncenter wp-image-270870 size-large" src="https://technicalterrence.com/wp-content/uploads/2023/12/Over-200000-Ethereum-Tokens-Sent-to-Centralized-Exchanges-A-Threat.jpeg" alt="ethereum” width=”980″ height=”552″ srcset=”https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=1199 1199w, https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=640 640w, https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=768 768w, https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=980 980w, https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=750 750w, https://bitcoinist.com/wp-content/uploads/2023/12/GB81tUHXAAAI2Ta.jpeg?w=1140 1140w” sizes=”(max-width: 980px) 100vw, 980px” data-recalc-dims=”1″/>
Total balance of ethereum on all crypto exchanges | Source: Ali_charts/X
Currency inflows can be an indication of sell-offs, as investors often use these centralized exchanges in order to sell assets. Consequently, transferring massive amounts of cryptocurrency to these platforms could place downward pressure on the price of a cryptocurrency (ethereum, in this case).
Furthermore, the cryptocurrency expert noted in his post on X that a substantial increase in currency inflows could indicate upcoming price volatility for eth. This implies that there is a higher probability of large price swings in the near future.
ethereum Price Overview
However, it is worth noting that there has been no clear impact on the price of ethereum so far. At the time of writing, the cryptocurrency is valued at $2,287, reflecting a price growth of just 1.4% in the last 24 hours.
In the weekly period, the price of eth has also remained calm, with barely a percentage increase in the last seven days. This emphasizes the altcoin's difficulties in staying above $2,300 despite being above the price on Friday, December 22.
However, ethereum maintains its position as the second-largest cryptocurrency in the sector, with a market capitalization of more than $274 billion.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Over-200000-Ethereum-Tokens-Sent-to-Centralized-Exchanges-A-Threat" alt="ethereum” width=”2174″ height=”1434″/>
ethereum price faces rejection at $2,300 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image by Bernard Marr, TradingView chart
