Following a relatively quiet start to the week, Ethereum’s price seems to have returned to some of its early December promises. However, the latest on-chain revelation shows that the “king of altcoins” might be facing some uncertainty over the coming the coming weeks.
A massive amount of ETH has made its way to centralized exchanges over the past few days, resulting in a spike in the Ethereum balances of these platforms.
200,000 ETH Sent To Exchanges In Four Days – What’s Next?
In a post on the X platform, a crypto pundit revealed that investors have been moving massive amounts of Ethereum to centralized exchanges over the past few days. This on-chain revelation is based on the “Balance On Exchanges” metric from data analytics platform Glassnode.
— Ali (@ali_charts) December 22, 2023
According to the data from Glassnode, around 200,000 ETH (worth more than $460 million) have been transferred to known cryptocurrency exchange wallets in the past four days. When most cryptocurrencies are sent to centralized exchanges, it typically suggests that some investors might be looking to offload their assets.
Total balance of Ethereum on all crypto exchanges | Source: Ali_charts/X
Exchange inflows can be an indication of sell-offs, as investors often use these centralized exchanges for the purpose of selling assets. Consequently, the transfer of massive crypto amounts to these platforms could trigger downward pressure on the price of a crypto (Ethereum, in this case).
Moreover, the crypto pundit noted in their post on X that a substantial spike in exchange inflows could indicate upcoming price volatility for ETH. This implies that there is an increased likelihood of big price swings in the near future.
Ethereum Price Overview
However, it is worth noting that there has not been any clear impact on Ethereum’s price so far. As of this writing, the cryptocurrency is valued at $2,287, reflecting a mere 1.4% price growth in the past 24 hours.
On the weekly timeframe, the price of ETH has also been quiet, with barely a percent increase in the past seven days. This emphasizes the altcoin’s struggles to hold above $2,300 despite making it above the price mark on Friday, December 22.
Nevertheless, Ethereum maintains its position as the second-largest cryptocurrency in the sector, with a market capitalization of more than $274 billion.
Ethereum price faces rejection at $2,300 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from Bernard Marr, chart from TradingView