Investors transferred $720 million in Ethereum (ETH) to exchanges amid regulatory uncertainty
On-chain activity indicates a noticeable reaction from investors to the regulatory uncertainty associated with the second largest digital asset by market capitalization — Ethereum.
Recently, Ethereum has been heavily criticized by members of the crypto community, who point to the inexpressive price dynamics of the asset and the impressive pace of development of the Solana ecosystem. In addition, US regulators allegedly targeted the Ethereum Foundation, questioning the classification of ETH.
According to the IntoTheBlock analytical platform, the growth of negative sentiment led to investors transferring more than $720 million in ETH to centralized exchanges over the week.
SpotOnchain has identified three well-known traders who have transferred 32,527 Ethereum worth about $109 million to trading platforms over the past 24 hours.
"Three addresses have transferred 32,527 ETH ($109 million) to CEX in the last 24 hours. Have the whales decided that the recent correction is still not enough?", SpotOnChain analysts ask.
Lucas Otumuro, head of research at IntoTheBlock, noted the low efficiency of ETH compared to bitcoin and even the S&P 500. However, he stressed the strength of the asset's fundamentals, which continue to reassure long-term holders.
"In general, after a major update, ETH quotes continue to remain bullish. Despite recent adverse factors, the data indicates the continued growth of Ethereum at both the first and second levels of the network," Otumuro said.
Confirming this position, Santiment analysts noted a surge in transactions among Ethereum whales. Between March 19th and 21st, this group made 59,137 transfers in excess of $100,000. The company also noted a 7 percent reduction in the average 30-day trading volume of ETH, which signals the possibility of a market recovery.
In addition, analysts drew attention to the fall in the Ethereum relative strength index (RSI) to 28.5, which was the lowest value since the end of January. The RSI index serves as an indicator of momentum to determine whether the market is overbought or oversold. Readings below 30 usually indicate oversold.
