Ethereum’s price experienced a significant decline in the last 24 hours, largely due to massive whale movements to centralized exchanges. One whale moved 80,000 ETH—worth around $185 million—from Arbitrum, sparking concerns of a potential large-scale selloff. Similar whale activities during the same timeframe have fueled fears among investors, creating uncertainty around Ethereum’s price stability.
Whales Trigger Ethereum Selloff Concerns
Crypto whales, known for holding and moving vast amounts of digital assets, are making waves in the Ethereum market. Data from Whale Alert revealed a massive transaction of 80,000 ETH being moved from Arbitrum, raising alarm bells throughout the community. The size of this transfer has led to growing speculation about a potential selloff, causing Ethereum’s price to take a sharp downturn.
Adding to the turmoil, Metalpha, a Hong Kong-based crypto firm, transferred 21,999 ETH—worth approximately $51.16 million—to Binance. According to Lookonchain data, Metalpha has been consistently depositing ETH into Binance over the past five days, amounting to a staggering $128 million in total. These transactions have further exacerbated concerns about a broader market selloff.
On-chain data highlights that other whales are also moving large sums of Ethereum to centralized exchanges, including Coinbase. The influx of ETH to exchanges signals a possible increase in short-term selling pressure, contributing to the ongoing downward trend in Ethereum’s price.
Meme Coin Movements Add to Market Volatility
Whale activity has not been limited to Ethereum alone. A notable whale recently moved 4 trillion Pepe (PEPE) tokens from the Bybit exchange, stirring speculation around the meme coin’s price trajectory. This shift in PEPE holdings comes at a time when meme coins have seen a resurgence, following Bitcoin’s price bounce back to $57,000 earlier this week.
These large token movements to exchanges often signal potential sales, raising concerns among traders and investors. Conversely, outflows from exchanges to other wallets are generally viewed as signs of long-term holding, which can stabilize market sentiment. For now, Ethereum is facing increasing pressure from the heavy inflows to exchanges.
What’s Next for Ethereum?
Following the whale activity, Ethereum’s price dropped by 1.9% within 24 hours, now trading around $2,290. This recent downturn halted the positive momentum Ethereum had been building after breaking through key resistance levels. Traders are now watching for further price action, as macroeconomic conditions in the U.S. could offer some relief to the broader market.
In the U.S., inflation appears to be slowing down, with the Consumer Price Index (CPI) showing a year-over-year increase of just 2.5%, marking the fifth consecutive month of declines. Investors are now hoping that the Federal Reserve will cut interest rates in September, which could provide a bullish backdrop for Ethereum and other cryptocurrencies.
Also Read: Ethereum Slumps To $2,338 – 1.3% Daily Decline And Active Addresses Surge By 16% In September
For Ethereum traders and investors, the immediate focus will be on whether these whale-driven selloffs continue or if the market can stabilize amid improving macroeconomic indicators. While the short-term outlook seems bearish, a potential Federal Reserve rate cut could provide the catalyst Ethereum needs to regain its upward momentum.
Ethereum’s recent price decline is a reminder of the impact that whale movements can have on the market. As large holders continue to transfer ETH to exchanges, fears of a broader selloff persist. However, with positive economic signs on the horizon, the crypto community remains cautiously optimistic about Ethereum’s long-term recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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