ETH Selloff Alert Confuses Crypto Traders After Initial Buy Signals Emerged
On-chain analysis firm Lookonchain has spotted a potential selloff signal for Ethereum, flagging two massive ETH deposits made by whales to the Binance and OKX crypto exchanges for a combined total of over $71 million.
Typically, crypto whales and investors holding large amounts of cryptocurrencies prefer to keep them away from centralized exchanges, as they consider the potential risks associated with custodial storage. Hence, moving significant volumes of such assets to such platforms suggests they may be about to exchange them for other digital assets or sell them for fiat.
In many cases, whales sell their crypto holdings to take profit after significant rallies or when they think the price of a particular crypto asset will soon drop. Analysts also believe that some whales sell notable volumes of specific digital assets to trigger a pullback, enabling them to accumulate the same tokens at cheaper prices in the future.
Whatever the prevailing scenario, retail investors often monitor the activities of such whales and institutional investors to preempt their actions and prevent being taken unaware during notable price movements. Hence, Lookonchain’s alert about the massive ETH deposits on the Binance and OKX crypto exchanges.
Despite the massive ETH deposits spotted by Lookonchain, the cryptocurrency’s price has remained relatively stable, with no exceptional volatility. TradingView’s data shows that Ethereum traded in a tight range, between $3,721 and $3,545, within the timeframe of the whale deposits. However, the alert did not confirm whether the whales had already sold the token or still held them ahead of a potential selloff.
The latest notification by Lookonchain confused some crypto community members, one of whom responded that the prevailing sentiment from a few hours ago was to follow whales buying ETH. Such a switch over a short period highlights the nature of the crypto market, which is renowned for unprecedented volatility in the twinkle of an eye.
