After a relatively quiet start to the week, Ethereum price appears to be back to some of its early December promise. However, recent on-chain revelations show that the “king of altcoins” may face uncertainty in the coming weeks.
Over the past few days, massive amounts of ETH have flowed into centralized exchanges, causing a surge in Ethereum balances on those platforms.
200,000 ETH was transferred to the exchange in 4 days. What’s next?
In a post on the This on-chain disclosure is based on the “Balance On Exchanges” indicator from data analytics platform Glassnode.
About 200,000 in the last 96 hours $ETHA purported value of approximately $460 million was transferred. #Cryptocurrency Wallet exchange.
This significant surge could be indicative of what’s to come. #Ethereum Price volatility. pic.twitter.com/N09a0NZLvR
— Ali (@ali_charts) December 22, 2023
Data from Glassnode shows that over the past four days, approximately 200,000 ETH (worth over $460 million) has been transferred to known cryptocurrency exchange wallets. When most cryptocurrencies are transferred to centralized exchanges, it generally suggests that some investors may be looking to offload their assets.
Total balance of Ethereum on all crypto exchanges | Source: Ali_charts/X
Since investors often use these centralized exchanges for the purpose of selling assets, exchange inflows can be a sign of selling. As a result, large-scale cryptocurrency transfers to these platforms can trigger downward pressure on the price of the cryptocurrency (in this case, Ethereum).
Moreover, the cryptocurrency expert noted in a post about X that a significant surge in exchange inflows could indicate future price volatility for ETH. This means that the likelihood of major price movements occurring in the near future increases.
Ethereum price overview
However, it is noteworthy that there has not yet been a clear impact on the price of Ethereum. As of this writing, the cryptocurrency is worth $2,287, reflecting a price increase of just 1.4% over the past 24 hours.
During the week, ETH price was also quiet, with barely a percentage increase over the past seven days. This highlights the altcoin’s struggle to stay above $2,300 despite surpassing the price on Friday, December 22nd.
Nonetheless, Ethereum maintains its position as the second-largest cryptocurrency in its space, with a market capitalization of over $274 billion.
Ethereum price faces rejection at $2,300 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image by Bernard Marr, TradingView chart