Massive ETH Transfer Triggers Sell-Off Fears as Ethereum Price Crashes Below Support

A large transfer of 129,392 ETH worth approximately $312 million to Coinbase sparked fears of a potential sell-off in the cryptocurrency market as Ethereum’s price dropped below significant support levels. The unidentified wallet had been dormant since late 2022, raising concerns over the implications of this transfer amidst ongoing geopolitical tensions. Technical analysis suggests a bearish outlook with possible further declines expected.

A significant transfer of 129,392 ETH — valued at nearly $313 million — has set off alarm bells in the cryptocurrency market as it plunged below key support levels. The transfer from an unknown wallet to Coinbase, reported by the tracking service Whale Alert, has led many to speculate about potential sell-offs. Particularly worrisome is that the original wallet has shown little activity since November 2022, raising questions about its sudden reactivation.

The Whale Alert report, shared on X (formerly Twitter), highlighted the timing of the transfer. It coincided with Ethereum struggling to maintain a price above $2,500. Right before the transfer, ETH could not hold on to the $2,400 mark, indicating underlying market fragility. Etherscan data shows the wallet that executed the large transaction had previously made a deposit of 6,469 ETH from a Coinbase-connected address, implying a connection to possible liquidations or sell-offs.

After the transfer, Ethereum’s value dropped, breaking a critical support level at $2,450, which has fueled bearish sentiment among investors. The last 48 hours saw notable price reductions, and while geopolitical tensions following US military action in Iran certainly play a role, this wallet transfer might have added pressure on the already tense market environment.

The technical analysis looks bleak for Ethereum at the moment. A detailed review of its 4-hour chart reveals a bearish breakdown after the asset fell below the support line set at $2,362. This strong bearish signal, compounded by the whale deposit, means that Ethereum’s short-term outlook is increasingly pessimistic.

Recent price trends show Ethereum could retest lows below $2,000 if the downward momentum continues. Current projections suggest reversal targets at $2,151 and $1,954, with possible further declines to $1,750 if panic selling intensifies. As of now, Ethereum’s trading price stands at about $2,290, reflecting a 5.5% downturn in one day and a heavier 10% slide over the past week.

In the crypto world, such large inflows into exchanges have been known to indicate impending sell-offs, and this recent movement only intensifies fears among traders and investors trying to gauge market sentiment.

Scott Matherson, a crypto journalist at NewsBTC, outlines trends in the crypto industry. With deep insights drawn from his extensive experience in various sectors, he translates complex crypto topics into engaging narratives. In addition to analysing market shifts, regulatory changes, and technological advances, Scott also promotes sustainable practices in cryptocurrency initiatives. His commitment to fostering understanding around digital currency and blockchain technology stands as a pillar of his work in the field, aiming to enlighten and educate readers.