Whale shifts $110.5 million into ETH

Whale shifts $110.5 million into ETH as Ethereum Hits New All-Time High

As Ethereum has hit a new all-time high, Whales has transferred a whopping $110.5 million in ETH from crypto exchanges, pushing ETH balances to a 15-month low.

  • Ethereum hits new all-time high
  • Users consume ETH balances on exchanges

Earlier today, the second largest digital currency hit a Crypto Bull new all-time high at the $1,467 level as per data from CoinMarketCap.

Meanwhile, crypto whales and other users have pushed ethereum balances on exchanges to a 15-month low.

Ethereum reaches new record high

After peaking at a high of $1,448 on Jan. 19, the second largest cryptocurrency traded in a range, moving between the $1,300 and $1,200 areas.

However, earlier today, on January 25, Vitalik Buterin’s brainchild’s native currency, Ethereum, went up to a new ATH of $1,467 per coin.

Related Whales Move $451.3 Million in ETH from Highest Exchanges, ETH Balance on Platforms Hits Major Low.
Related
Whales Move $451.3 Million in ETH From Top Exchanges, ETH Balance on Platforms Hits Major Low

Users consume ETH balances on exchanges

According to data shared by the Glassnode analytics team, ETH balances on crypto exchanges have fallen to a 15-month low of 15,500K ETH.

Users have acquired ETH and included it in their fridges and online wallets for long-term safekeeping. Financial institutions are also among them, with Grayscale on that list, with $3,393.7 million in its Ethereum Trust according to data shared by the company on January 22.

Meanwhile, crypto whales have also moved a staggering amount of ETH over the past 24 hours.

They have transferred a mammoth amount of over $110.5 million worth of ETH, or about 86,277 ETH.

Some ETH cubes were withdrawn from crypto exchanges, such as Binance and others, to anonymous wallets. Other portions of ETH were moved between crypto wallets with unregistered owners.

Danger to Ethereum: This massive factor is slowing down the bull run

Both Bitcoin and Ethereum have entered a phase of consolidation in the past few weeks , with both trying to break out above and below their respective medium-term price ranges.

Ethereum could continue its consolidation for the time being as a large holder with an enormous amount of ETH has emerged to sell.

This could prevent the cryptocurrency from moving higher in the short term – and it could signal that there are holders of the coin who are unwilling to let Ethereum go up right now.

Ethereum sees big sales wall

According to crypto trader „Cyrii“, there is an entity or group of traders who sell over 32,000 Ethereum – currently worth around $ 40,000,000 – on Bitfinex’s Ethereum / USD market.

This is by far the largest entry on the order book in this market.

Analyst Nik Yaremchuk comments that there is now still pressure to sell worth 25,000 Ethereum. As can be seen on the chart he shared, not a single trade was printed above the $ 1,250 level because the sell has not yet drawn the sell order.

It may be that this selling wall is related to a large claim that took place on Bitfinex’s margin book a few weeks ago.

As commented by crypto asset analyst „Light“, the $ 1.7 billion long opened on Bitfinex by an unknown entity has started to shrink in the past few days over what is known as a „claim“ .

A claim on Bitfinex is when a margin trade is converted to an exchange trade, which means that the cost of the borrowed capital is settled to the lender.

This means that the trader held a large ETH cash position and may now liquidate it.

Strong fundamentals

This selling pressure that exists in Ethereum markets comes despite the fact that the cryptocurrency has seen strong on-chain trends.

Spencer Noon, investor at crypto-focused venture firm Variant and an on-chain analyst, says there are a number of on-chain trends that suggest Ethereum ( See Buy Ethereum Guide ) „is at its all-time high.“ will blow up „.

These are:

Ethereum’s transaction fees are more than double that of Bitcoin, suggesting for some that it is one of the most useful, if not the most useful, crypto-asset and blockchain network.

The amount of value transferred to Ethereum via stablecoins, ETH itself, and other tokens surpasses Bitcoin and is well above that of other blockchains. This is largely due to the strength in the DeFi space and the rise of stablecoins, of which there is now over $ 20 billion worth on the Ethereum network, minus the algorithmic stablecoins.

Ethereum has an all-time high of daily active addresses, around 550,000 (90-day moving average).
Ethereum has seen a strong influx of capital locked into its native decentralized financial applications, with the total value locked into DeFi reaching over $ 25 billion.

Noticias de Bitcoin en vivoNoticias de Bitcoin en vivo

Jack Dorsey no está a favor de las nuevas reglas de cifrado

Esto tiene sentido considerando que Square, una de sus firmas, compró recientemente aproximadamente $ 50 millones en bitcoins hace unos meses para convertirse en una de las primeras empresas institucionales en apoyar abiertamente Crypto Trader y tener una participación tan grande en él.

Es probable que Dorsey no quiera recibir un golpe por esta compra

Sin embargo, en una carta abierta a Financial Crimes Enforcement Network (FinCEN), Dorsey parece criticar estas nuevas reglas dado que potencialmente dañan la privacidad de las personas y que, en última instancia, dificultarían la aplicación de la ley financiera a largo plazo.

Las reglas a las que se refiere se introdujeron inicialmente en la época navideña . Proponen que cualquier persona que participe en una transacción de criptomonedas por un valor aproximado de $ 3,000 o más debería presentar sus identidades, incluidos sus nombres y direcciones, a los legisladores para que puedan ser examinados adecuadamente. La idea es garantizar que no se lleve a cabo ningún crimen criptográfico y, si ocurre, esto podría facilitar su búsqueda e investigación.

Dorsey está en contra de esto, afirmando en su carta:

Si la propuesta se implementara tal como está redactada, se requeriría que Square recopilara datos no confiables sobre las personas que no han optado por nuestro servicio ni se han registrado como clientes.

Explicó además que las reglas hacen poco para detener los delitos financieros tradicionales y, en cambio, apuntan innecesariamente a aquellos involucrados en transacciones criptográficas:

La incongruencia entre el tratamiento del efectivo y la criptomoneda según la propuesta de FinCEN inhibirá la adopción de la criptomoneda e invadirá la privacidad de las personas … Si la madre de un cliente de Square le regala a su hija $ 4,000 en efectivo físico y la hija deposita esos fondos en un banco, el banco habría ninguna obligación de recopilar información sobre la madre del cliente. Según la propuesta, si esta misma transacción se completara en criptomonedas, el banco tendría que ir más allá de su relación con el cliente e inmiscuirse en la información privada de la madre para que la hija deposite con éxito y acceda libremente a su regalo.

El verdadero problema aquí en la mente de Dorsey es que enviaría a los agentes de la ley a varias persecuciones salvajes en busca de personas que no han hecho nada malo, y teme que muchas personas, como un medio para evitar que su privacidad sea invadida, finalmente recurran a canales no regulados para escapar a la detección, lo que podría ponerlos en peligro real de otros delincuentes en el futuro.

Se deben proteger las identidades de las personas

Además mencionó:

Si bien sería absurdo que la FinCEN imponga regulaciones que resultarían en una menor visibilidad de las actividades que busca monitorear, eso es exactamente lo que haría la propuesta… Tal como está escrito, estas regulaciones solo resultarán en socavar los objetivos declarados de la propuesta.

Ethereum price hits $ 1,161 for the first time in 3 years: what’s next?

Ether, the company’s own cryptocurrency on the Ethereum blockchain, rose to $ 1,161 and then quickly fell back.

The Ether ( ETH ) price hit the $ 1,161 level for the first time since January 2018. Immediately after a new three-year high, the ETH slipped below 900 US dollars.

Ether rallied on the momentum of Bitcoin Supreme. In the past, altcoins have seen a rapid upward trend after a strong BTC rally. Traders usually call this „old season“ because many altcoins tend to go up at the same time.

Why did ether fall and what happens next?

Ether rose after the Bitcoin rally, but on-chain data also showed that there was a liquidity crisis on the sales side.

In the course of 2020, the ETH reserves on the stock exchanges fell to all-time lows. That means there are fewer numbers of ETH that can be sold on exchanges. Ki Young Ju, the CEO of CryptoQuant, explained :

„It seems that the liquidity crisis on the sell side at $ ETH is gradually becoming as severe as it is on the $ BTC market. At $ BTC, the reserves of all exchanges fell by 31 percent compared to February 2020. At $ ETH, the reserves of everyone fell Stock exchanges by 20 percent compared to May 2020. “
However, despite the strong rally to the highest levels since January 2018, Ether quickly saw a decline again. There are two main reasons for this correction: The high funding rate and strong sell orders on a major resistance.

According to data from Glassnode, Ethereum’s futures funding rate averages 0.2 percent on major exchanges.

Typically, the funding rate stays around 0.01 percent unless the futures market is overheating. Glassnode analysts said:

„Ethereum funding rates are at a record high, averaging 0.2 percent on major exchanges. #BitMEX leads the way in this regard with funding rates over 0.4 percent.“

When the market is overwhelmingly long or long, the likelihood of a long squeeze increases.

The term „long squeeze“ describes a situation in which holders of long positions are forced to liquidate their positions if the price of Bitcoin falls. As a result, the selling pressure on BTC increases in a short period of time.

Ethereum outlook, according to traders

Trader „Mayne“ said that Ethereum turned down the weekly supply level. There was the ETH course when the weekly candle opened on Monday. The trader said :

„For the time being, a rejection of the weekly offer level EQ. Predicted financing rate and the people with leveraged long positions are going crazy. I’m out of the leveraged long positions for the time being.“

Market and on-chain data generally suggest that late buyers are being crowded out by aggressive sellers. As soon as ETH passed the US $ 1,100 mark, there was an increase in sell orders on the spot market.

Alex Wice, one of the top traders on the FTX rankings, shared a short position on Ethereum and Bitcoin on social media.

The trader also raised concerns about Ethereum’s high funding rate and indicated that it needs to be reset.