Ethereums drop after a $2 billion USD transfer – whats next for the cryptocurrency?
Ethereum Under Selling Pressure Following $2 Billion ETH Transfer Related to PlusToken Financial Pyramid
Ethereum (ETH) is facing concerns over selling pressure after a $2 billion ETH transfer from wallets associated with the PlusToken financial pyramid, which operated in China between 2018 and 2019. Chinese authorities confiscated 833,083 ETH worth over $2 billion in 2020 at current market rates.
Investor Concerns and Decline in ETH Trading Volume
Analysts report that over $450 million in ETH has been moved in the last 24 hours, with conflicting information emerging regarding the exact amounts. News of the ETH transfer has raised concerns among investors, traders, and analysts about potential selling pressures on ETH.
ETH trading volume has dropped by 4.56% to $23.6 billion, and market capitalization has decreased by 3.59% to $291.1 billion. According to the latest data, ETH is currently priced at $2421 after a 3.35% decline on daily charts, with market capitalization falling by 3.79% to $290.8 billion.
ETH Price Decline Linked to General Price Corrections
The decline in ETH price is attributed to broader price corrections rather than just movements related to PlusToken, with indicators such as RSI and RVGI suggesting significant selling pressures and downward trends.
Outflows from exchanges have decreased over the last seven days, indicating that traders are keeping their assets liquid due to potential sales amid lack of trust in ETH’s long-term prospects. The open ETH position has also decreased from $14.6 billion to $9.7 billion in the last seven days, showing active position closures by investors.
