A massive ETH whale movement has sparked discussion as to whether Ether (ETH) is poised to experience a major correction very soon. Ether (ETH) traded weakly on Monday, Nov. 28 following news of large cryptocurrency transfers to Binance.
On-chain researcher Lookonchain has warned of massive selling pressure to come in this major ETH move. The researcher reported that during today's Asian trading hours, a whale address moved 73.224 ETH, worth $85,67 million, on Binance.
Large investors usually move their coins to centralized exchanges with the intention of selling them or using them as margin in derivatives trading. Therefore, an increase in trade flows could lead to higher price volatility.
At the moment, Ether (quotation ETH) – the native cryptocurrency of the Ethereum blockchain – is down 4% and is currently trading at $1.170 with a market cap of $143 billion. Amid the large influx to the Binance cryptocurrency exchange, Lookonchain tweeted “Beware ETH selling pressure.”
The on-chain researcher also said that the address that moved 73.000 ETH to Binance is the same one that pulled 84.131 ETH from the staked ether (stETH)-ether liquidity pool of decentralized exchange Curve last week.
The price of Lido liquidity protocol staked-ether (stETH) tokens has since dropped to 0,97 ETH after the whale withdrew a whopping 84.000 ETH from Curve's pool. According to data from Dune Analytics, stETH is currently trading at 0,982 against Ether.
Growing Concerns Over Packaged Ether De-Peg
Crypto watchers have recently raised concerns about wrapped Ether. Technically, the value of wrapped Ether should remain the same as Ether, while still offering access to more applications.
According to some reports, the concerns arose from some joke posts on Twitter falsely claiming a break in the expected value of wrapped Ether and ETH. Markus Thielen, head of research and strategy at cryptocurrency lender Matrixport, said he is not too concerned about the recent events surrounding wrapped Ether (ETH). That's because wrapped Ether is based on smart contracts, self-executing software. Thielen added:
This makes it unlikely that it will actually be manipulated, since no person, nor a centralized entity, should be able to manipulate the open-source smart contract, which can also be checked for bugs or defects.
The cryptocurrency market in general came under selling pressure once again today, due to protests in China against Covid restrictions. The entire cryptocurrency space is down 3%, with a similar decline in the price of Bitcoin.
