On Tuesday Ether (ETH) experienced another price drop as its price fell by 4% due to intense selling pressure.
In response to the recent fall in price, a large number of investors in a combined move moved almost 73K ETH tokens to Binance. This move was made during the Asian trading hours.
As ETH worth $85.7 million was transferred to Binance, the market cap of ETH on its native blockchain decreased by over 4%.
This move has certainly surprised analysts. It is important to understand Ethereum’s blockchain is not for trading purposes.
As Ethereum is a decentralized blockchain, the transfer of 73K ETH to a centralized exchange is a clear indicator of selling.
The Current Move Serves Two Purposes
Investors might sell the ETH coin or they can leverage their equity in derivatives trading.
In both cases, it is obvious that as per the current circumstances, a large number of investors are fancying their chances of selling their digital tokens to be on the safe side.
Lookonchain, a digital platform through its official statement argued that the address of the current account that withdrew such a massive amount is similar to that which pulled 84,131 ETH from the stETH solvency pool.
Given the current circumstances, this sell pressure will only grow further. Moreover, this move has also disturbed the price of the (stETH) token, by the end of today stETH was being traded at 0.982.
Ether’s Market Performance
By the end of Thursday, Ether (ETH) the native token of Ethereum was priced at $1,220. Ether’s consolidation pattern was finally broken after three weeks.
The strong bearish trend that is currently circulating across the entire cryptocurrency market is the reason behind this move.
This bearish trend might continue to put more selling pressure on the cryptocurrencies, which means Ether’s price can further decline.
This would be the perfect opportunity for bearish investors to buy the currencies at lower rates and hold on to them for the coming five to 6 months to earn staggering profits.
The Current Selling Period Will be Short-Lived
As selling pressure is mounting, bearish investors are ready to anticipate the opportunity to buy all the currencies which will be up for sale. This will wrap up the buying and selling process within hours.
Ether now again faces the threat of deflation in its price. This is not the only case where a large number of ETH coins have been transferred to another exchange.
The recent days have seen a drastic rise in the Ethereum service charges. These price hikes have forced investors to take move away from the Ethereum blockchain.
Only in the month of November 2022, investors have moved over 1 million ETH coins to other exchanges.