In a major development that has left the cryptocurrency markets reeling, a large entity transferred Ethereum (ETH) worth $33 million to Binance in a solitary transaction, sources said.
This enormous movement of ETH has left the altcoin vulnerable to significant volatility, and its price has fallen by 2.18% from the $1,807 level reported earlier.
The identity of the wallet owner from which the transfer was initiated is unknown, but they only had to pay a $1 transaction fee on the Ethereum blockchain. Such a substantial transfer of tokens to an exchange often indicates an impending sell-off, which can cause the asset’s rate to plummet.
Consequently, Ethereum’s price has suffered, dropping by 2.53% to $1,761 at the time of writing. This comes when there is still a lot of fear, uncertainty, and doubt (FUD) in the cryptocurrency industry.
However, even though Ethereum’s price has taken a hit, Akash Girimath, a well-known cryptocurrency analyst, suggests that the optimistic outlook for ETH will remain intact if the price stays above the $1,636 level. Nevertheless, suppose the price does drop below this level. In that case, it could lead to a significant decline in the Ethereum price, potentially falling to the $1,500 psychological level before a recovery is attempted.
Despite the recent setback, Ethereum’s price has some upward potential to reach the key psychological resistance level of $2,000. The achievement of this level is contingent on the cryptocurrency’s ability to sustain its current momentum, which is influenced by the macroeconomic environment and the bullish trend of Bitcoin above the $27,000 mark.
In addition, the official release date for the Shanghai update has been recently announced by the Ethereum network, scheduled to occur in just three weeks. This update aims to enhance the network’s scalability and transaction processing speed, making it more appealing to institutional investors and businesses.