In a series of high-profile transactions, a significant amount of Ethereum (ETH) has been on the move, raising eyebrows and triggering debates across the crypto community. According to Whale Alert, a prominent tracker of blockchain transactions, a staggering 15,000 ETH (valued at around $24.7 million) was recently transferred from an unknown wallet to Gate.io, followed by an even larger transaction of 21,299 ETH (equivalent to approximately $35.2 million) sent from another unknown wallet to Coinbase.
A Drop Below $1500 On ETH Price?
These back-to-back transfers have ignited discussions about potential market implications and the motives behind these substantial movements. Also, concerns have arisen that heightened whale activity might exert downward pressure on the price of ETH, possibly leading it to breach the $1,500 level. Presently, the ETH coin price is trading at $1,647.75, experiencing a minor drop of less than 1% over the last 24 hours. Its market capitalization of $198.05 billion.
Even though the above data signals that Whales are getting rid of their ETH holdings, an interesting trend emerged during the recent market downturn. While smaller traders were offloading their holdings, prominent players within the crypto landscape were seen accumulating ETH. This accumulation has led to an increased concentration of ETH supply, with the top 10 addresses now controlling more than 35% of the total supply.
However, this elevated concentration doesn’t necessarily signify a move towards centralization. Instead, it underscores how smaller traders responded to market uncertainty and fear during this period of market turbulence, as highlighted by on-chain data provider Santiment.
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ETH Price Analysis By Expert
Forecasts from crypto trading expert Ali Martinez paint a cautious picture, suggesting that if Ethereum falls below the $1,600 – $1,550 range, it might pave the way for a substantial correction ranging from 37% to 45%, potentially targeting the $1,000 level.
Earlier observations from Ali had also pointed out concerning signs regarding Ethereum’s network fundamentals. The number of monthly active Ethereum wallets has been trailing below the yearly average, indicating limited blockchain activity, a classic indicator of weak network health and usage.
Not just this, he also very recently highlighted, that the Ethereum MVRV Ratio, when compared to the 180-day SMA, provides information about market patterns. Due to recent price drops, the MVRV Ratio has fallen below the 180-day SMA, a warning concern for ETH bulls.
As Ethereum navigates through these various factors, the crypto world remains on edge, watching closely for further developments and potential shifts in the market landscape. The connection of whale activity, market sentiment, and network fundamentals adds layers of complexity to the ongoing Ethereum narrative.
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