Ethereum, the second-largest cryptocurrency by market value, may be poised for significant volatility in light of recent market developments. A 4% decrease in the past 24 hours has sparked bearish sentiments among investors due to whale activities.
The transfer of approximately 56,000 ETH to exchanges has raised concerns about a potential correction. Analyzing the token’s on-chain data could provide more insight into this matter.
While these events unfold, various on-chain firms have shed light on significant whale activities surrounding ETH. In the last 24 hours, a total of 55,706 ETH was moved to one of the world’s leading CEXs.
According to data from Whale Alert, 10,431 ETH worth $33.23 million was transferred to Binance. Additionally, another whale moved 33,383 ETH valued at $106.12 million to the same CEX, followed by 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.
On the other hand, the overall market outlook is also fueling speculations about the ETH price. Initiatives suggesting that Ethereum might be considered a security have created further uncertainties and negatively impacted the price.
As of now, Ethereum’s price has fallen by 4.31% in the last 24 hours to reach $3,172. The price movement, combined with derivative data, presents conflicting views.
Data from Coinglass shows a 4.76% decrease in open interest for ETH, while derivative volume has increased by 11%.
The recent volatile price movements in Ethereum, along with derivative data, are likely leaving investors with mixed feelings due to speculation-driven transactions.
In other news, we recently reported that Justin Sun, the founder of TRON, has been accumulating large amounts of ETH. This could be interpreted as Sun having bullish expectations for ETH in the near future.
Disclaimer: The information in this article should not be considered investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
