In a striking development within the cryptocurrency sphere, data analytics from the Santiment feed have unveiled that a staggering amount of Ethereum, equivalent to roughly 110,000 ETH, has been transferred out of recognized crypto exchange wallets. This massive movement took place in a mere span of 24 hours.
A cryptocurrency analyst, Ali, shared a Twitter post providing insights on the current ETH market:
#Ethereum | Roughly 110,000 $ETH were withdrawn from known #crypto exchange wallets in the past 24 hours, worth around $177.65 million, according to onchain data from @santimentfeed. pic.twitter.com/3CGVgOQUbM
— Ali (@ali_charts) October 5, 2023
The value of this immense Ethereum withdrawal approximates an impressive sum of $177.65 million. Such hefty transfers, especially within such a short timeframe, are not a regular occurrence and have sparked intrigue within the crypto community.
Such a shift within such a short timeframe draws attention to potential market behaviors or strategic decisions by large stakeholders. Historically, substantial withdrawals from exchanges indicate long-term holding intentions by the token holders. When investors decide to move their assets away from exchanges, they might wait to sell them.
With reduced Ethereum liquidity on exchanges, there might be potential for price volatility due to supply and demand dynamics. While it is speculative to pinpoint the exact reason for these transfers, it is an undeniably sizable event in the cryptocurrency landscape.
Ethereum price has been trading in a sideways trend in the past week, hovering around the $1,600 -$1,660 range. The bullish and bearish camps have been in a stalemate, with no major movements either way. At the time of writing, the token is present at $1,622, with a decrease of 0.89% in the last 24 hours, according to the data from CoinMarketCap.
The current market capitalization for the cryptocurrency is $195 billion, ranking second in the hierarchy of digital assets. However, the 24-hour trading volume has seen a surge lately, reaching $43 billion, indicating that market activity is on the rise. The circulating supply of Ethereum sits at 120,244,439 ETH, with a maximum supply marked as not available.
The critical support for Ethereum is at $1,600, with resistance at $1,680. A breach of either level could lead to a significant price movement in the direction of the break. If bears continue to dominate the market, Ethereum could revisit its weekly low of $1,580. On the other hand, if bulls manage to push through resistance at $1,680, ETH could see a potential surge towards the next psychological level of $1,900.
