Ethereum Price at Risk as Fidelity Sends $213M to Coinbase
Leading altcoin Ethereum (ETH) is facing increasing selling pressure as financial giant Fidelity moved more than $200 million worth of the cryptocurrency to Coinbase in 48 hours.
The influx of tokens into exchanges has sparked concerns that it could exacerbate existing downward pressure on Ethereum prices.
Ethereum risk drops as Fidelity moves ETH to Coinbase
In a series of transactions over the past 48 hours, the crypto arm of asset management firm Fidelity has deposited $213 million worth of ETH into leading exchange Coinbase via Cumberland.
According to Arkham, the first two transactions involving the transfer of 20,000 ETH to Coinbase were completed on January 8. The last transaction performed on Thursday involved a deposit of 11,250 ETH, worth $36.51 million, to Coinbase.
These Ethereum transfer This resulted in a surge in transaction inflows to the token. According to Glassnode, a staggering 550,930 ETH worth over $1 billion was sent to exchange addresses on January 9, the highest single-day inflow since December 20.
If market demand is unable to absorb the increased supply, the continued accumulation of ETH in exchange wallets could intensify downward pressure on its price.
When exchange inflows to an asset surge, it means selling pressure increases as holders move assets to exchanges, potentially leading to liquidations. If sell orders exceed demand, this trend can cause prices to fall.
ETH Price Forecast: Low Demand Adds to Concerns
Readings from ETH/USD one-day chart It shows that there is no such demand in the altcoin market to absorb the growing supply. its decline Relative Strength Index (RSI) Reflecting the weakening of buying pressure. At press time, the momentum indicator was in a downtrend at 42.73.
Ethereum’s relative strength index Data suggests momentum is fading, with the asset approaching oversold territory but not yet seriously undervalued. If the buying pressure weakens further, the price of ETH could fall below $3,249 and plummet to $3,027.
On the other hand, if foreign exchange inflows stall and demand climbs, it may Pushing Ethereum price to $3,758.
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