Ethereum (ETH) Sell-Off Fears Spike As Tokens Flow Onto Exchanges

Massive amounts of Ethereum (ETH) have been transferred to exchanges over the past 48 hours, signaling a possible sell-off. Earlier this morning, the whale tracking platform, Whale Alert, shared in a post on X (Twitter) that 15,000 ETH, worth more than $24 million, was transferred from an unknown wallet to Gate.IO.

? 15,000 #ETH (24,339,858 USD) transferred from unknown wallet to #GateIO

— Whale Alert (@whale_alert) September 5, 2023

Meanwhile, Wu Blockchain also shared Whale Alert data that revealed a movement of roughly 300,000 ETH, valued at around $488 million, from two wallet addresses to Coinbase. Following the transfer to Coinbase’s active wallet, the funds were divided into transactions of 4,282 ETH each and transferred to multiple addresses.

Additionally, PeckShieldAlert also reported on X today that $41 million worth of cryptocurrencies were drained off of the betting platform in a hack over the past day. About 9.62K of the drained tokens were ETH tokens, noted the post.

#PeckShieldAlert A total of ~$41M worth of cryptos were drained from @Stake, with ~$15.7M on #Ethereum (9.62K $ETH), ~$7.85M on #Polygon (14.24M $MAITC), and $17.75M on #BNBChain (82.65K $BNB)

— PeckShieldAlert (@PeckShieldAlert) September 5, 2023

It is likely that the sell-off fear was fueled by the fact that Vitalik Buterin-related addresses transferred thousands of ETH tokens to exchanges yesterday. An address linked to Vitalik has already allocated 31,000 ETH to four separate addresses.

Daily chart for ETH/USDT (Source: TradingView)

From a technical standpoint, there was a potential for ETH’s price to revisit the important support level at $1,580 in the upcoming week. This follows the formation of a negative price channel on the altcoin’s daily chart over recent days, during which ETH exhibited lower highs and lower lows.

On 29 August 2023, ETH managed to break out of the negative price channel and traded above it for approximately 48 hours. However, the altcoin eventually faced significant selling pressure, leading it to drop back into the descending channel. Furthermore, indicators on the technical side indicated that sellers had the upper hand in terms of short and medium-term momentum.

At press time, the 9-day Exponential Moving Average (EMA) line was positioned beneath the 20-day EMA line. Additionally, both of these indicators were situated below the 50-day EMA line. Should this bearish momentum persist, there is a possibility that ETH’s price could once again test the critical level at $1,580 in the near future.

Conversely, if ETH manages to close a daily candle above $1,690 within the next 48 hours, this would invalidate the bearish outlook. In such a scenario, the dominant altcoin could potentially aim to challenge the subsequent significant threshold at $1,775.

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