- On-chain data shows a whale address moved 73,224 ETH, worth $85.67 million, to Binance, sparking concerns of a sell-off.
- Furthermore, the de-peg in wrapped Eth with the ETH price has also raised concerns within the crypto community.
A massive ETH whale movement has stirred up the discussion about whether Ether (ETH) is all set to enter a strong correction very soon. On Monday, November 28, Ether (ETH) traded weak amid the reports of large crypto transfers taking place to crypto exchange Binance.
On-chain researcher Lookonchain has warned of massive incoming selling pressure amid this large whale movement of ETH. The researcher reported that during the Asian trading hours today, a whale address moved 73,224 ETH, worth $85.67 million, to Binance.
big investors usually move their coins to centralized exchanges with the intention to sell or use the coins as a margin in derivatives trading. Thus, an uptick in exchange inflows might lead to greater price volatility.
As of now, Ether (ETH) – the native cryptocurrency of the Ethereum blockchain – has dropped 4 percent and is currently trading at $1,170 with a market cap of $143 billion. Amid the large inflow to crypto exchange Binance, Lookonchain tweeted “Watch out for the selling pressure of ETH”.
— Lookonchain (@lookonchain) November 28, 2022
The on-chain researcher further stated that the address which moved 73,000 ETH to Binance was the same one that pulled out 84,131 ETH from the decentralized exchange Curve’s staked ether (stETH)-ether liquidity pool last week.
Since then the price of staked-ether (stETH) tokens of liquid-staking protocol Lido dropped to 0.97 ETH after the whale withdrew a massive 84,000 ETH from the Curve pool. As per data by Dune Analytics, stETH is currently trading at 0.982 relative to Ether.
Rising concerns over the de-peg of wrapped Ether
Crypto watchers have been recently raising concerns around wrapped Ether. Technically, the value of wrapped Ether is supposed to remain the same as Ether while offering access to more applications.
As per some reports, the concerns ignited from some Twitter joke posts that falsely claimed a break from the expected peg in the value of wrapped Ether and ETH. Markus Thielen, head of research and strategy at crypto lender Matrixport said that he’s not too concerned with the recent events around wrapped Ether (ETH). This is because wrapped Ether is based on smart contracts, an automatically executing software. Thielen added:
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This will make it unlikely to be actually manipulated as no person, nor a centralized entity, should be able to manipulate the open-source smart contract, which can also be checked for bugs or flaws.
The broader cryptocurrency market has once again been under selling pressure today sparked by protests in China against Covid restrictions. The entire crypto space is down by 3 percent with a similar drop in the price of Bitcoin.