Galaxy Digital has transferred 25,000 ETH worth over $40 million to Binance, causing Ethereum’s price to drop from $1,677 to $1,623. The transfers raise concerns over institutional sell-offs and market sentiment, with analysts noting technical indicators suggesting further declines to $1,100. Galaxy Digital’s activities follow a $200 million legal settlement regarding market manipulation related to LUNA cryptocurrency.
Galaxy Digital has transferred 25,000 Ethereum (ETH), valued at over $40 million, to Binance over three days. This transfer has raised concerns within the market, particularly regarding institutional sell-offs impacting Ethereum’s price and stability. Analysts observed a price drop from $1,677 to $1,623, attributing this decline to the large asset movements.
The initial transfers occurred on April 12, with Galaxy Digital depositing two significant amounts: 4,500 ETH and 8,000 ETH, valued at approximately $7.11 million and $12.63 million, respectively. Two days later, they continued with 2,500 ETH worth $4.05 million and another 10,000 ETH amounting to $16.32 million, contributing to downward pressure on Ethereum’s market price.
Amid these Ethereum transfers, Galaxy Digital also moved substantial sums of stablecoins, including 5 million USDT and 100,000 USDC, alongside a small quantity of Avalanche (AVAX). Despite these outflows, Arkham Intelligence reports that the firm still holds approximately 199.795 ETH and 18,150 AVAX, plus 4.208 million DAI and 3.757 million USDC, giving a total stablecoin reserve of about $7.97 million.
These transfers come in the wake of a significant legal settlement, where Galaxy Digital agreed to a $200 million payment due to allegations of market manipulation related to the LUNA cryptocurrency. The New York Attorney General claimed the firm promoted LUNA while selling its holdings without adequate disclosure, leading to substantial profits amid a price increase.
Market analysts indicate that Ethereum is showing troubling signs, having formed a bear flag pattern, which poses a risk of further declines. If Ethereum fails to maintain support at $1,600, it could see a drop to around $1,100, representing a potential 33% decrease from current levels. Additionally, the Relative Strength Index (RSI) being below 50 reinforces ongoing bearish sentiment, thereby heightening concerns among investors regarding both Ethereum’s future and the implications of Galaxy Digital’s actions.
