The meteoric rise of the Ethereum price was abruptly halted on Saturday when a significant amount of the digital asset was transferred to the Binance exchange.
The transfer, which took place at 1:30 a.m. ET, sent shockwaves through the market and fueled fears of a sell-off, causing ETH to lose a significant portion of its market value.
Despite its earlier gains, the largest altcoin by market cap is now facing uncertainty as investors wait for further developments with bated breath.
Following a lengthy period of consolidation, ETH broke out on March 10, and the altcoin has been off to a fast start ever since, resulting in a significant increase in its value.
The top altcoin surged past the $1,800 mark in a bullish move, securing a significant price gain.
The positive sentiment, however, was short-lived, as market data shows that approximately 18,657 ETH (approximately $33,130,425 at current rates) was recently transferred to the Binance exchange, causing investors to be concerned.
The transaction has raised concerns about the possibility of a sell-off, making the largest altcoin by market cap vulnerable to a drop in value.
When a whale moves coins, it can also indicate how they feel about an asset. If a whale sells a large amount of Ethereum, it could mean that they believe the price has peaked or that they have lost faith in the asset’s potential. This can cause panic among other investors, causing the price to fall even further.
On Friday at 1:30 a.m. ET, an unknown wallet, thought to belong to a wealthy whale, made a transaction on the Ethereum blockchain for $1.
According to data from crypto market tracker CoinMarketCap, the impact of this transaction caused Ethereum’s price to fall by 2.53% from its previously reported value of $1,807, and it was trading at $1,777 at the time of writing.
Although the price of Ethereum has fallen, it still has room to rise before reaching the psychological resistance level of $2,000.