Ethereum, the second-largest cryptocurrency in terms of market value and the leading altcoin, has once again grabbed headlines. Over the past 24 hours, the altcoin has experienced volatile price movements, seemingly triggered by a significant surge in whale activity, as revealed by on-chain data. This has resulted in over 150,000 ETH being transferred between cryptocurrency exchanges, leading to increased speculation about the future price movements of the altcoin.
Ethereum Whales Continue with Large-Scale Transactions
During Ethereum’s monthly price correction, ongoing whale transactions have created mixed market sentiments regarding the altcoin’s future price trajectory. According to Whale Alert, a public tracker of major movements on blockchains, whales transferred 151,593 ETH in the past 24 hours. While some transactions indicate that certain large-scale investors remain confident in the altcoin’s future, others suggest a potential inclination to sell. This situation seems to have fueled the turbulent price trend of ETH in the past 24 hours.
Notable movements detected in on-chain data include a deposit of 1,700 ETH to the Coinbase exchange from a wallet address starting with 0x493, which is known as a smart money address. Smart money addresses belong to investors who consistently achieve significant gains in the cryptocurrency market.
ETH Struggles to Maintain Its Strength
As of now, the price of ETH has dropped by 1.85% in the past 24 hours and is currently struggling to stay above the critical support level of $3,000. Data reveals that the altcoin’s market value has decreased by 1.86% and its trading volume has dropped by 16.90% during the same period. Furthermore, Coinglass data shows a 0.12% increase in open interest on the derivatives side for ETH, while its trading volume has decreased by 24.19%. This situation on the derivatives side could be triggering the recent turbulent price movements of the altcoin.
In addition, there is regulatory uncertainty regarding whether Ethereum could be classified as a security, which increases the likelihood of a spot Ethereum ETF not being approved in the U.S. This uncertainty is significantly adding pressure on the altcoin. Experts warn that it would not be surprising if ETH’s price falls below the $3,000 threshold.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
