The cryptocurrency market is on high alert as over $112 million worth of Ethereum (ETH) was transferred to two major crypto exchanges, Coinbase (NASDAQ:COIN) and Kraken, triggering concerns about potential selling pressure. The transfers were reported on Thursday, with an anonymous wallet moving 22,157 ETH ($34.5 million) to Coinbase and another 50,000 ETH ($78.3 million) to Kraken.
Such large deposits often suggest forthcoming major liquidations. Ethereum balances on exchanges have reached multi-year lows due to staking, a scenario that has led to limited sell-side liquidity and raised the risk of slippage if these entities liquidate their holdings. The motives behind these transfers remain uncertain, with possibilities ranging from potential liquidations to precautionary positioning for other reasons.
Despite these concerns, there are still bullish predictions for Ethereum's future. Ethereum has experienced significant price movements in the past. In early 2018, it saw a surge of 14,000%, followed by a bear market low of $85 in December of the same year. Currently priced around $1,500, Ethereum's recent transfers have put the market on alert for increased volatility.
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