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Whale moves $33 million worth of ETH to Binance in one go: What this means for Ethereum price

  • A whale has moved $33 million worth of Ethereum to Binance in a single transaction.
  • ETH price is now exposed to massive volatility levels, dropping 2.18% from the $1,807 level reported earlier.
  • The general bullish outlook will be invalidated once PoS token drops below $1,636.

Ethereum price (ETH) earned a significant price gain on March 18 when it broke beyond the $1,800 level. However, recent market data shows that a significant chunk of ETH was transferred to the Binance exchange at 1:30 AM ET, casting doubts on a possible sale happening. The transfer resulted in the largest altcoin by market cap losing part of its market value.

Ethereum price slumps 2% on massive whale activity 

Ethereum price (ETH) slumped after 18,657 ETH tokens (approximately $33,130,424 at current rates) were transferred in a single transaction. The transaction was traced back to an unknown but affluent wallet, costing him a mere $1 transaction fee on the Ethereum blockchain. In most instances, when such a huge chunk of tokens is transferred to an exchange, it usually points to a prospective sell activity that eventually drives down the asset's price.

Related: Assessing chances of Ethereum price rally to $2,400

As a result of the activity, Ethereum price has taken a breather, easing back 2.53% from the $1,807 reported earlier and auctioning for $1,761 at press time. This comes as market FUD continues to linger in the industry. According to projections by prominent crypto analyst Akash Girimath, however, the current bullish narrative for ETH would only be invalidated once the price crosses below the $1,636 level.

A move below the aforementioned invalidation level could send Ethereum price down to lose the support offered by the 50, 200, and 100-day Exponential Moving Averages (EMAs) at $1,588, $1,553, and $1,529, respectively.

In extreme cases, the Ethereum price could drop to the $1,500 psychological level before buyers can attempt a recovery. Such a move would constitute a 15% downswing for the PoS token from current levels.

 ETH/USDT 1-day chart

Meanwhile, Ethereum price still has some ground to cover before tagging the $2,000 psychological resistance level. The move would be feasible if the cryptocurrency sustains the current momentum, which, in turn, depends on the macroeconomic environment. Notably, the recent collapses in the banking sector fueled more liquidity into the crypto market, causing the Ethereum network to record a positive net flow of $35.8 million.

Ethereum price could resume its uptrend if Bitcoin remains bullish above $27,000 and ETH bulls hold forte by increasing their buying pressure. Moreover, the Ethereum network recently confirmed the official launch date for the Shanghai update, which will happen in three weeks.

 These factors could be enablers to Ethereum price soaring in value near term.

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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