Posted:
- Ethereum surpassed $3200 at the time of writing.
- FTX and Alameda’s ETH deposit raised questions about the potential impact on prices.
Ethereum [ETH] recently crossed the $3,200 mark, sparking optimism among holders.
However, beneath this positive momentum lurked potential challenges, with data revealing interesting moves from key players that could cast a shadow on ETH’s future.
Whales move their belongings
Despite the upward trajectory, concerns increased when FTX and Alameda accounts deposited 2,000 ETH (equivalent to $6.45 million) into Coinbase following the price hike.
The Coinbase deposit can be interpreted as a move by these entities to profit from the recent price increase.
If these whales decide to sell their ETH holdings on the open market, it could cause selling pressure, which could lead to a drop in the price of Ethereum.
Major sell-offs caused by key players can cause market fluctuations and cause a chain reaction of selling by other market participants, potentially resulting in a bearish trend.
The timing of this deposit added an additional element of uncertainty.
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Perpetual volumes, a key indicator, also hit record highs during Ethereum’s robust resurgence.
The performance and valuation of related projects like Muxprotocol saw a staggering volume of over $1.9 billion last week, bringing returns to an impressive 93%.
This increase underlined the increasing interest in Ethereum-based projects.
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How is ETH performing?
At the time of writing, ETH was trading at $3,227.00, up 3.81% in the last 24 hours.
The consistent growth, with multiple higher highs and higher lows, indicated a bullish trend in the price of ETH.
AMBCrypto’s examination of the Ethereum network also revealed positive patterns. Notably, a sharp increase in network growth suggested a significant influx of new users accumulating ETH.
At the same time, the growing speed indicated an increased frequency of ETH transfers, reflecting increased activity and engagement within the network.
Source: Santiment
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Trader sentiment is crucial to understanding the potential trajectory of ETH’s price. At the time of writing, the percentage of short positions had fallen, reflecting a shift in sentiment towards a more optimistic outlook.
This reduction in bearish positions was in line with the overall positive trend observed in Ethereum’s recent price movements.
Source: Coinglass