Whale Alert, a blockchain tracking service, recently reported a significant transfer of 129,392 ETH from an unidentified wallet to Coinbase amidst a drop in Ethereum prices. This transfer raised concerns of a potential selloff, especially considering the timing of the transaction.
The wallet in question, which had been inactive in terms of large ETH transfers since November 2022, suddenly came to life with this deposit into a centralized exchange. This event coincided with Ethereum struggling to maintain its price above $2,400, indicating a possible bearish sentiment in the market.
Etherscan data revealed that the wallet involved in the transfer, identified as “0xd47b,” had previously received 6,469 ETH from another wallet linked to Coinbase. This recent deposit into Coinbase further fueled speculation of a looming selloff, especially as Ethereum lost a crucial support level at $2,450.
While external factors like geopolitical tensions may have contributed to the price drop, the whale deposit into Coinbase added to the downward pressure on Ethereum. Such large inflows into exchanges often precede liquidation, particularly during times of heightened investor uncertainty.
From a technical perspective, Ethereum’s short-term outlook turned bearish following a breakdown below the support level at $2,362. Technical analysis on TradingView indicated a bearish setup, with potential downside targets at $2,151 and $1,954, and possibly even $1,750 if the selloff intensifies.
The Ichimoku Cloud overlay on the trading chart highlighted weakening bullish momentum, with previous resistance levels proving difficult to overcome. The recent whale selloff may have been the catalyst for Ethereum’s downward move, with the price now approaching new lows below $2,000.
As of the latest update, Ethereum was trading at $2,290, reflecting a 5.5% and 10% decline over the past 24 hours and seven days, respectively. The chart from TradingView illustrated the downward trajectory of ETH price, signaling a potential continuation of the bearish trend.
In conclusion, the recent whale deposit into Coinbase amidst a price drop in Ethereum has raised concerns of a possible selloff in the market. Traders and investors are advised to closely monitor the price action and key support levels as Ethereum navigates through this challenging period.