2024-04-13
The cryptocurrency market are currently experiencing significant selling pressure, resulting in over $900 million in liquidations within the past 24 hours.
Ethereum (ETH) has been particularly affected, witnessing a substantial decline of 8% and reaching as low as $3,250.
The Ethereum ecosystem has seen a surge in whale transactions, adding to the selling pressure on the cryptocurrency.
As a response to the market downturn, four prominent whales or institutions have offloaded a considerable amount of Ethereum (ETH), totaling 31,683 ETH, with a value of approximately $106 million.
According to data provided by Lookonchain, these transactions involved major players in the cryptocurrency space, including Cumberland, 0xC3f8, 0x1717, and Alameda/FTX.
Cumberland was observed depositing 17,206 ETH, equivalent to $57.3 million, onto various exchanges. Similarly, wallet address 0xC3f8 transferred 7,976 ETH, valued at $26.6 million, to Binance.
Additionally, 0x1717 deposited 4,000 ETH, amounting to $13.32 million, into exchange platforms. Moreover, Alameda/FTX contributed 2,500 ETH, equivalent to $8.33 million, to Binance.
These notable sell-offs occur during a period of market volatility and serve as indicators of significant movements by institutional investors and whales.
On the other hand, whale deposits to exchanges show no signs of stopping.
According to a report from Whale Alert, an unidentified wallet has transferred $158 million worth of ETH to Binance.
This substantial movement of ETH to exchanges raises the risks of further sell-offs in the open market.
Crypto analyst Fred Krueger expressed concern about the Ethereum (ETH) ecosystem in a noteworthy statement, suggesting that its narrative is fading amidst various challenges.
Krueger highlighted multiple factors contributing to what he perceives as the decline of the ETH story.
These factors include ongoing investigations involving the Ethereum Foundation and a Wells Notice issued for UniSwap, a major decentralized exchange platform operating on Ethereum.
Additionally, Krueger pointed out the absence of an Ethereum Exchange-Traded Fund (ETF) in the near future, which could potentially dampen investor sentiment.
He also noted a shift away from non-fungible tokens (NFTs) towards ordinals, indicating changing trends within the Ethereum-based digital asset space.
Moreover, Krueger mentioned the emergence of Solana as a competitor, posing a threat from the left flank and implying increased competition for Ethereum in the blockchain ecosystem.
Lastly, Krueger remarked on the diminishing appeal of the "Ultra Sound Money" narrative associated with Ethereum, suggesting a shift in market sentiment and narrative dynamics surrounding the blockchain platform.
Due to the recent correction, the Ethereum price has lost significant support levels. If the selling pressure persists, $3000 dip is likely to Occur.
