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Ethereum Slips As Whale Address Moves Over 73k ETH To Crypto Exchange Binance


Stack of Ether coins with gold background

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Ethereum (ETH-USD) withdraw 4.6% in trading Monday morning after transferring large amounts of ETH to centralized crypto exchange Binance is likely to cause increased price volatility.

The world’s largest altcoin by market capitalization (ETH-USD) changed hands at $1.16K just before 11 a.m. ET, trading near last week’s low of $1.08k amid the aftermath of the FTX crypto exchange explosion. Meanwhile, most major tokens are in the negative territory due to the broader risk aversion, including bitcoin (BTC-USD) -2.4%binance coin (BNB-USD) -6.3%ripples (XRP-USD) -6.1% and cardano (ADA-USD) -4.4%.

Apparently a whale address transferred 73,224 ether (ETH-USD) ($85.67 million) to Binance earlier in the session, online researcher Lookonchain wrote on Twitter parcel. That address initially withdrew 84,131 ETH from the Curve decentralized exchange’s ETH (stETH) liquidity pool on November 24, leading to a drop in the price of stETH/ETH to $0.9682 at the time. .

In general, an increase in inflows into exchanges bodes ill for cryptocurrency prices as market participants often move funds to centralized exchanges with the intention of selling them.

“Beware of ETH selling pressure,” warned Lookonchain.

Selling pressure comes as well as ether (ETH-USD) saw some small outflows totaling $6.1 million in the week ending November 25, according to a CoinShares report. On a brighter note, the massive inflows into short ETH products seen last week have been completely reversed with an outflow of $15.2 million, but “it is still too early to say that.” this is a positive change in mentality,” it said.

In the wake of the FTX collapse, a survey shows that most institutional investors planned to increase their crypto allocation in the next three years.

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