Ethereum, the second largest cryptocurrency by market value, may experience significant price volatility in light of recent market developments. A 4% decrease in the last 24 hours has raised concerns among investors, as whale activities suggest a bearish outlook.
The transfer of approximately 56,000 ETH to exchanges has sparked speculation of a potential correction. To gain deeper insights into this matter, it is advisable to examine the token’s on-chain data.
Simultaneously, several on-chain firms have shed light on significant whale activities surrounding ETH. Over the past 24 hours, a total of 55,706 ETH has been moved to one of the world’s leading CEXs. Whale Alert data reveals that 10,431 ETH worth $33.23 million was transferred to Binance. Furthermore, another whale moved 33,383 ETH valued at $106.12 million to the same CEX, followed by yet another whale transferring 11,892 ETH worth $38.07 million back to exchanges.
These large Ethereum transactions have raised concerns about a potential future price correction. The fact that whales are making such moves without a rally occurring increases the likelihood of a correction.
Moreover, the overall market outlook is fueling speculation about the price of ETH. Initiatives suggesting that Ethereum might be considered a security have created further uncertainty and negatively impacted the price.
Currently, Ethereum’s price stands at $3,172, representing a 4.31% decrease in the last 24 hours. The combination of price movements and derivative data presents conflicting views.
According to Coinglass data, there has been a 4.76% decrease in open interest for ETH, while derivative volume has increased by 11%. The volatile price movements in Ethereum, along with derivative data, are likely to evoke mixed feelings among investors due to speculation-driven transactions.
In other news, it has come to light that TRON’s founder, Justin Sun, has been accumulating large amounts of ETH, which could be interpreted as a sign of bullish expectations for ETH in the future.
Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
