While Ethereum (ETH) has treaded carefully amid the various sentiments about the crypto market, a whale investor appears to be on the verge of selling its ETH holdings.
Lookonchain, an on-chain analysis platform, revealed some massive transactions taking place behind the scenes of Ethereum earlier today.
Over 70,000 ETH was seen transferred to the popular crypto exchange Bitfinex hot wallet nearly six hours ago, according to the analysis platform.
Regardless, Ethereum is still trading above $1,900, indicating that the whale has not decided on the transferred Ether.
Why have over 70,000 coins been transferred to Exchange?
Lookonchain reported earlier today on Twitter that an Ethereum whale with the address “0x8033” transferred 75,311 ETH worth $144 million to the Bitfinex exchange Hot Wallet.
Though the whale’s next move in sending the ETH is unknown, it could be a possible sell-off.
According to Lookonchain, the same whale received 76,212 ETH from Bitfinex on January 5, 2019, when the market price of ETH was still around $156. On December 6, 2020, the whale deposited 900 ETH into Tornado Cash.
Regardless of the whale’s pending decision, it is worth noting that the whale may be looking to profit, which would imply selling all of the over 70,000 ETH sent to the Bitfinex exchange.
This is because, in the crypto market, a large deposit of an asset to exchange may indicate upcoming selling pressure, as exchanges are where most large investors go to sell their holdings of an asset.
Is Ethereum in for a massive drop?
However, as previously stated, this news could indicate that a large sell-off of ETH is about to occur in the Ethereum market.
However, a technical analysis of the ETH price chart shows that the asset does not appear to be headed for a drop.
On the 1-day chart, ETH appears to be attempting to break above a significant high, which is just above the $2,000 region.
If ETH eventually breaks through that zone, the asset’s price could see a quick spike, bringing it closer to the next notable high, which is seen at around $2,100.
Meanwhile, ETH is currently in the green, up 2.5% in the last 24 hours after surviving a minor retracement over the weekend.
The asset’s price has risen from a low of less than $1,800 over the weekend to more than $1,900 at the time of writing, continuing its bullish trend that began at the start of the day.