Crypto Market Watch: Concerns Rise as $112 Million Worth of Ethereum Moves to Major Exchanges

Crypto Market Watch: Concerns Rise as $112 Million Worth of Ethereum Moves to Major Exchanges

Crypto News – In a recent development, a substantial amount of Ethereum (ETH), totaling over $112 million, was transferred to prominent cryptocurrency exchanges Coinbase and Kraken, prompting concerns within the market regarding possible selling pressure.

Whale Alert, a platform that tracks large cryptocurrency transactions, reported that an anonymous wallet moved 22,157 ETH, valued at $34.5 million, to Coinbase. Shortly thereafter, a separate wallet deposited 50,000 ETH, amounting to $78.3 million, into Kraken.

These significant inflows of ETH into liquid exchanges have sparked concerns among analysts. Large cryptocurrency deposits of this nature often foreshadow substantial liquidations, causing market participants to be on high alert.

Adding to the unease is the fact that Ethereum balances on exchanges have reached multi-year lows due to staking. This reduction in sell-side liquidity amplifies the risk of slippage should these entities choose to offload their holdings.

However, the exact motivations behind these over-the-counter transactions remain unclear. It is plausible that these wallets are reorganizing funds for various purposes.

At present, it remains uncertain whether these transfers indicate impending liquidations or are merely precautionary maneuvers. Nevertheless, the potential selling power has put the market on edge, anticipating increased volatility should the transfers indeed hint at bearish intent.

Contrary to these apprehensions, Standard Chartered analyst Geoff Kendrick recently made a bullish prediction, foreseeing Ethereum’s price reaching $8,000 in the near term, considering it as a stepping stone towards a long-term target ranging from $26,000 to $35,000. Kendrick cited the growing adoption of smart contracts and other applications as key drivers for this optimistic outlook. Ethereum has historically shown parabolic gains following previous bear markets, surging by an astonishing 14,000% in early 2018.

In retrospect, Ethereum’s price was approximately $10 in January 2017. By January 2018, it had surged significantly to $1,450, representing an extraordinary gain of over 14,000%. However, in December 2018, it experienced a substantial drop, plummeting to a bear market low of $85. As of the latest update, ETH is hovering around $1,500, as the broader market struggles to maintain a bullish trend.