More ethereum holders moving coins to centralized exchanges, on-chain data shows
A crypto trader expects ethereum (ETH) prices to fall or slow down in the days head. This comes after on-chain monitor, LookOnChain, revealed that more ETH holders are moving coins to centralized cryptocurrency exchanges like Binance and Kraken.
Ethereum prices consolidate
Presently, ETH prices remain in consolidation with reaction points between $1,800 and $2,015 based on the price action of the last two weeks.
According to CoinMarketCap, ETH is down 1.8% in the last 24 hours, trading at $1,908 at press time.
Due to the past few days’ poor performances, the altcoin leader’s weekly performance remains almost steady versus bitcoin (BTC).
Ethereum’s volatility is also falling, with the Bollinger Bands, a technical indicator used for gauging volatility, appearing to converge, as per developments in the daily chart.
Ethereum transfers, rising fees, and PEPE mania
Last week, Vitalik Buterin, the co-founder of Ethereum, transferred roughly $500,000 worth of ethereum. Moments later, the Ethereum Foundation, a team building the smart contracting network, also moved coins worth $30 million.
Typically, coin transfers to centralized exchanges are associated with liquidation. It remains to be seen whether ETH prices will drop in the weeks or months due to holder sell-off.
The rising transfers of ETH to exchanges coincide with rising gas fees. This event can be attributed to the current meme coin craze. The fear of missing out (FOMO), the pepe coin(PEPE), is the main driver of high gas fees.
Still, with higher gas fees, more coins are burned as laid out after the EIP-1559 upgrade. Ultimately, this will, in the long haul, make ETH deflationary.