Amid recent significant online transfers, there are concerns of a substantial price drop for Ethereum (ETH), the world’s second-largest cryptocurrency. On-chain data reveals that approximately 300,000 ETH, valued at nearly $500 million, has been transferred from two different wallets to the popular crypto exchange Coinbase.
These transfers originated from Coinbase’s cold wallets and were subsequently dispersed among multiple addresses after being moved to the exchange’s hot wallet. Each transaction involved the transfer of 4282 ETH.
Santiment, an on-chain data provider, notes that this spike in on-chain transactions is the highest since June 13, making it one of the largest spikes in 2023. The reasons behind these transfers remain unknown, and it is uncertain whether they will have an impact on the price of Ethereum.
At the time of writing, the price of ETH has exhibited significant volatility, experiencing a 1.19% decline and trading at $1,619, with a market capitalization of $194 billion. On the technical chart, Ethereum continues to display notable weakness.
Ethereum’s price recently dropped below both the crucial 100-day and 200-day moving averages after a substantial decline from the critical resistance level of $1.8K. However, it found support at the significant level of $1.6K, leading to a rebound.
This support zone holds significance as it aligns precisely with the 61.6% Fibonacci retracement level, which corresponds to a previous strong upward movement towards the $2.1K mark in early March. If the price falls below $1.6K, the likelihood of a bearish downturn becomes increasingly plausible.
Additionally, on-chain data indicates a strong bearish sentiment for Ethereum. The 30-day moving average on the chart reveals a downward trajectory in the buy-sell ratio over the past few months. A ratio above 1 signifies a bullish sentiment, while a drop below 1 indicates a bearish sentiment. If the price drops below $1,600, it could potentially trigger a deeper correction. Some market analysts even suggest the possibility of Ethereum reaching $1,000.
A positive catalyst on the horizon could be the approval of the Ethereum Futures ETF, which appears likely. The U.S. Securities and Exchange Commission (SEC) may soon give its approval for this development.
