The recent bankruptcy of cryptocurrency giants FTX and Alameda Research has piqued market interest due to their substantial Ethereum (ETH) transactions, which analysts suspect may have influenced ETH’s market price. The companies’ latest moves are believed to have played a significant role in the digital currency’s recent depreciation.
Markets Scrutinize High-Volume Ethereum Transfers
Spot on Chain, an on-chain analytics firm, reported that a combined total of 6,500 ETH worth approximately $24.57 million was moved by FTX and Alameda Research to the Coinbase exchange platform. This transfer has sparked discussions among market analysts about its impact on Ethereum’s pricing trends.
These entities have been particularly active in Ethereum’s market, with transactions including the substantial Coinbase transfer and the move of additional assets worth $6.26 million. Notably, the value of Ethereum has seen a consistent decline following these transactions, leading to speculation about a direct effect on the cryptocurrency’s volatility.
Correlation Between Major Transactions and Price
A closer examination of the recent activities by FTX and Alameda Research uncovers a striking correlation with Ethereum’s price changes. Graphical data suggests that these transactions could be influencing the market value of ETH, potentially swaying prices in the short term.
Technical analysis of the Ethereum market reveals a prominent downtrend with resistance levels near $3,850, aligning with the 50 percent Fibonacci retracement level, posing challenges for bullish progression. Should ETH break above $3,880, it may regain momentum towards the $4,000 threshold. Conversely, if it fails to climb past $3,850, we could see a decline towards the support levels at $3,680 or even down to $3,350, signaling a deeper bearish trend.