Currently, the crypto market is under fire from bears, and coins like Ethereum (ETH) are already starting to feel the heat. Amid the struggle to recover, there have been massive inflows of ETH into centralized exchanges, which could spell further struggles for the digital asset going forward.
Ethereum Whales Move Millions To Centralized Exchanges
Multiple reports from the on-chain whale tracking platform Whale Alert have shown that Ethereum whales could be exiting their positions in large volumes. The reports started on Saturday, July 22, when the first transaction was first picked up on the blockchain.
In the first transaction, Whale Alert shows that the whale had moved 15,000 ETH to Gate.io. And at the time, the transaction was worth around $28.28 million. However, this was only the first of many as the whale tracker would go on to report even larger movements to centralized exchanges.
The next was a transaction carrying 19,328 ETH worth $36.5 million at the time to Coinbase. Moving forward, the tracker also reported another transaction of 15,000 ETH ($28.1 million) being moved to the Gate.io crypto exchange once more.
The fourth transaction was one carrying 19,328 ETH valued at $36.12 million, transferred from another unknown wallet to Coinbase. And last but not least, a large ETH transaction carrying 12,000 ETH ($22.5 million) popped up in the early hours of Monday.
What Do These Transactions Mean For ETH?
These movements by Ethereum whales could have negative implications for the price of ETH going forward. This is because when crypto investors send coins to exchanges, it is usually because they are looking to sell their coins and take advantage of the deep liquidity that centralized exchanges provide.
If this is the case and these whales begin to sell such large amounts of ETH in one go, then it could significantly impact the price of ETH. This could see the altcoin which is already struggling in the market fall even further as the selling pressure climbs.
Already, ETH is seeing a decline in its prices, falling toward $1,830 in the early hours of Monday before making a brisk recovery. Such sharp declines could have been triggered by the whales selling, and if there is not enough demand in the market to soak up this new supply, then ETH’s price could return to the low $1,800s once more.
For now, the digital asset seems to be holding up against the bears but it has already lost its footing at the $1,850 support. Right now, the next major support lies at $1,800, unless the bulls are able to retain control and reclaim $1,900.