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ThecoinrepublicCryptocurrencyWhales Moving Ethereum Off The Exchanges: A...
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Whales Moving Ethereum Off The Exchanges: A Bullish Wave On The Horizon?

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The broader crypto markets including the market leaders Bitcoin and Ethereum, experienced a rollercoaster ride in the last couple of weeks. Ethereum price has witnessed a correction from $3900 level and retraced the $3400 level. However, the 50 day EMA is acting as a dynamic support as the price bounced back.

Moreover, there has been a notable shift in the balance of the top 100 exchange wallets which has dropped to a multi-year low, while the top 100 non exchange wallets are recording all-time high holdings.

Whales are Offloading Ethereum From Exchanges!

With the dramatic changes in the broader crypto markets these days, a notable shift in the on-chain metrics was observed. As per the data obtained from a financial website app.santiment.net, the holdings of the top 100 Ethereum wallets have dropped to a 2018 low value of 8.41 Million Ethereum.

The aggregate holdings of the top 100 non exchange wallets have surged to a record high of 68.39 Million ETH indicating the shift of Ethereum from exchange wallets to non exchange wallets. 

Typically, large-scale holders, often referred to as ‘whales,’ transfer their assets out of exchange wallets into other types of wallets when they do not foresee a significant market sell-off and prefer to retain their holdings for a certain duration. Such movements by whales withdrawing their holdings out of exchange wallets generally have a favorable effect on the market price.

Is Ethereum Preparing for a Potential Rebound?

The Ethereum price has rebounded from the 50 day EMA, indicating the presence of bulls near it. Whales are moving their holdings to non-exchange wallets indicating their intention to hold it for a significant duration. 

 

Moreover, the upcoming launch of Ethereum ETF could probably boost ETH demand. The reduced supply on exchanges may further enhance the price. 

As per the price action analysis, a sustained move above the $3700 could mark the end of a correction and the Ethereum price may resume its journey towards the major $4000 level. 

Conversely, the price might be at the risk of falling towards the $3300 until it is maintained below $3700 level. 

Conclusion.

The broader crypto market including the major players Bitcoin and Ethereum has been highly volatile in the recent sessions. Ethereum price corrected from $3900 to $3400 however got support near the 50 day EMA suggesting bullish sentiment. Data from app.santiment.net shows a significant shift of Ethereum from exchange to non-exchange wallets thus decreasing the supply at the exchanges. 

This move by whales implies a long-term holding strategy. The potential launch of an Ethereum ETF and reduced exchange supply could further drive up prices. ETH price recovery above $3700 may signal an end to the correction phase and a push towards $4000, while staying below $3700 risks a drop towards the $3300.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Adarsh Singh
Adarsh Singh
Adarsh ​​Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
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