• Ethereum network’s active deposits have reached an eight-month high.
• According to the latest data compiled by crypto-analytic Santiment, the deposits hitting an eight-month high could potentially foreshadow volatility in Ethereum’s price.
• ETH suppression in the price comes as whales holding 1,000 to 10,000 ETH offloaded a massive amount of tokens over the past two weeks.
Ethereum (ETH) Could be Hit by New Wave of Volatity: Data
The Ethereum network’s active deposits have recently hit an eight-month high, according to data compiled by crypto-analytic Santiment. This could potentially foreshadow volatility in Ethereum’s price. At the same time, whale holdings of 1,000 to 10,000 ETH have offloaded a large number of tokens over the last two weeks.
Deposits Reaching Eight Month High
The total number of incoming and outcoming transactions involving deposit addresses and accounts for both user-to-exchange transactions – from a personal wallet to a deposit address as well as from a deposit address to the main exchange wallet – has reached its highest point since August 2020. This could hint at upcoming volatility down the road for Ether’s price.
Impact on Price
It is unclear which direction Ether’s price will move in due to this news but it appears that selling pressure is increasing on this asset. The Shapella upgrade also failed to buoy prices and Ether is up only 3% since April 12 when it was first implemented. Furthermore, no impact has been seen from the Fed’s widely expected 25 basis point interest rate hike either.
Whales controlling between 1,000 and 10,000 ETH have been actively offloading their tokens over the past few weeks which may be contributing further downwards pressure on Ether’s price overall.
It remains uncertain what will happen with Ether’s price in light of this news but it appears that increased selling pressure may result due to recent whale activity and other factors such as low trading volume or lacklustre reactions to upgrades or announcements may make a significant difference moving forward too.