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According to crypto analyst Ali, nearly 420,000 Ethereum (ETH) have been transferred to various crypto exchanges over the past three weeks. This steady shift of ETH, valued at approximately $1.47 billion, has caught the attention of investors and analysts alike.
The influx of such a large volume of Ethereum to exchanges is noteworthy because it can imply a variety of strategies by holders. Typically, large-scale transfers to exchanges can suggest that investors are preparing to sell, potentially leading to a price drop.
However, the ETH token shift remains a subject of speculation. The move could be a response to recent market recoveries, with investors looking to take profits. It may also be related to institutional investors or large holders, known as “whales,” adjusting their portfolios in anticipation of future market movements.
The total value of the ETH moved, around $1.47 billion, might be substantial enough to impact the market. Ethereum’s price has been subject to volatility in recent weeks, and movements of this scale can contribute to price fluctuations.
At the time of writing, ETH was down 4.75% in the last 24 hours to $3,345, mirroring general market declines and down 10.21% weekly. ETH remains significantly down from highs of $4,093 attained on March 12.
ETH long-term investors remain steadfast
According to a recent analysis provided by Lucas Outumuro, Head of Research at IntoTheBlock, the amount of ETH in wallets that have been holding for over a year continues to hit new highs.
Despite reports of the SEC attempting to reassess Ether’s classification as a security and decreased odds of an ETF being approved, ETH’s long-term investors appear not to be selling.
Overall, ETH investors remain optimistic following the Dencun upgrade. This week saw the biggest amount of ETH exchanged on Mainnet since May 2022. ETH’s daily average volume has been on an upward trend, similar to the early bull market in 2020-2021.
In contrast to the last bull market, layer 2s (L2s) have dominated, with the total number of transactions on Base, Optimism and Arbitrum being more than double that of Mainnet. The number of ETH on L2s recently crossed 10 million for the first time, having doubled since last year.