Ethereum price’s meteoric rise was abruptly interrupted Saturday as a sizable amount of the digital asset was transferred to Binance exchange.
The transfer, which occurred at 1:30 AM Eastern Time, sent shockwaves through the market and raised concerns of a potential sell-off, causing ETH to lose a significant portion of its market value. Despite its earlier gains, the largest altcoin by market cap is now facing uncertainty as investors nervously await further developments.
Ethereum Price Rattled By Sudden Whale Move
Following a prolonged period of consolidation, Ethereum’s price broke out on March 10, and the altcoin has been off to an impressive start ever since, leading to a sharp increase in its value.
In a bullish move, Ethereum (ETH) surged past the $1,800 mark, securing a significant price gain. However, the positive sentiment was short-lived as market data reveals that approximately 18,657 ETH was recently transferred to the Binance exchange, causing concern among investors.
The transaction has cast doubts on the possibility of a potential sell-off, leaving the largest altcoin by market cap vulnerable to a decrease in value.
When a whale moves coins, it can also signal their 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 decline in price.
At 1:30 AM ET on Friday, an unknown wallet, believed to belong to a wealthy whale, made a transaction on the Ethereum blockchain with a transaction fee of only $1. The impact of this transaction caused Ethereum’s price to decrease by 2.53% from its earlier reported value of $1,807, and it was trading at $1,777 at the time of this writing, data from crypto market tracker CoinMarketCap shows.
Although Ethereum’s price has pulled back, it still has room to grow before reaching the psychological resistance level of $2,000. Whether or not this will happen depends on a variety of factors, including the macroeconomic environment and the cryptocurrency’s ability to maintain its current momentum.
Room For Recovery
Should Bitcoin remain bullish above $27,000 and Ethereum bulls continue to increase their buying pressure, the Ethereum price could potentially resume its uptrend. Adding to the optimism, the Ethereum network has recently confirmed the official launch date of the highly anticipated Shanghai update, scheduled for April 12.
Furthermore, the recent upheavals 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 price of ETH has seen a slight decrease of 0.05% in the past hour, following a 3.18% gain recorded over the previous 24 hours. Nevertheless, investors remain optimistic about the potential for Ethereum’s price to continue its upward trajectory.
-Featured image from The Daily Hodl