Ethereum price is rebound from its slump earlier in the week, but something has just come up to give some reason to raise the alarm. According to on-chain data, there were 56,795 ETH transferred into and away from Coinbase on one day.
It has flagged this for suspicion because such a transfer is indicative of a sell-off, seeing that Coinbase is one of the largest crypto exchanges where holders would find easy liquidation for their holdings in return for fiat currency. The largest transaction by value was also 30,020 ETH, worth approximately $87 million, transferred from an unidentified wallet to Coinbase Institutional.
While the exact reasons behind these transfers are not known, analysts look at these as a hint that some large investors are ready to sell their ETH. This would make its price move downward and risk derailing the current recovery attempt.
It is worth noting that not every transfer to Coinbase means selling essentially; investors may be transferring their ETH for staking or in order to use it in DeFi applications.
This is common, but huge units of ETH transferred within the shortest span of time make many raise an eyebrow. Investors are keeping their fingers crossed to see if this results in heavy selling pressure and its aftermath is reflected in the Ethereum price.
