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Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U. Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to crypto analyst Ali, nearly 420,000 Ethereum (ETH) have been transferred to various crypto exchanges over the past three weeks. This steady shift of ETH, valued at approximately $1.47 billion, has caught the attention of investors and analysts alike.
The influx of such a large volume of Ethereum to exchanges is noteworthy because it can imply a variety of strategies by holders. Typically, large-scale transfers to exchanges can suggest that investors are preparing to sell, potentially leading to a price drop.
However, the ETH token shift remains a subject of speculation. The move could be a response to recent market recoveries, with investors looking to take profits. It may also be related to institutional investors or large holders, known as “whales,” adjusting their portfolios in anticipation of future market movements.
The total value of the ETH moved, around $1.47 billion, might be substantial enough to impact the market. Ethereum’s price has been subject to volatility in recent weeks, and movements of this scale can contribute to price fluctuations.
At the time of writing, ETH was down 4.75% in the last 24 hours to $3,345, mirroring general market declines and down 10.21% weekly. ETH remains significantly down from highs of $4,093 attained on March 12.
According to a recent analysis provided by Lucas Outumuro, Head of Research at IntoTheBlock, the amount of ETH in wallets that have been holding for over a year continues to hit new highs.
Despite reports of the SEC attempting to reassess Ether’s classification as a security and decreased odds of an ETF being approved, ETH’s long-term investors appear not to be selling.
Overall, ETH investors remain optimistic following the Dencun upgrade. This week saw the biggest amount of ETH exchanged on Mainnet since May 2022. ETH’s daily average volume has been on an upward trend, similar to the early bull market in 2020-2021.
In contrast to the last bull market, layer 2s (L2s) have dominated, with the total number of transactions on Base, Optimism and Arbitrum being more than double that of Mainnet. The number of ETH on L2s recently crossed 10 million for the first time, having doubled since last year.