On-Chain Data Shows a Whale Was Behind ARB and ETH Price Drops

  • The post mentioned that a whale had sold 2.77M ARB and 21K ETH over the past 24 hours.
  • At press time, ARB was trading at $1.10 and ETH was changing hands at $1,839.81.

The blockchain tracking firm Lookonchain mentioned in a tweet this morning that a whale was responsible for the recent price drop in Arbitrum (ARB) and Ethereum (ETH). According to the post, this whale had transferred 2.77 million ARB and 21K ETH to Binance in the past 24 hours.

Shortly after the two transfers were processed, ARB’s price plummeted approximately 9%, while ETH dropped around 2%, the tweet added. The whale then withdrew 15.9 million Tether USD (USDT) from Binance this morning.

The entire crypto market was down 1.91% over the past 24 hours according to CoinMarketCap. As a result, the global crypto market cap was estimated to be $1.14 trillion at press time. Looking at ETH and ARB, ETH was able to recover slightly and was down 1.21% while ARB was down 6%. ETH was trading hands at $1,839.81 and ARB’s price stood at $1.10.

ARB also weakened against BTC during the same period. At press time, ARB was down 3.86% against the leading crypto. ETH, on the other hand, was able to outperform BTC by 0.96%.

Daily chart for ETH/USDT (Source: TradingView)

ETH’s price continued to trade within the consolidation channel between $1,784.85 and $1,942.32. The altcoin’s price was, however, resting on the lower band of the price channel and was also trading below the 9-day and 20-day EMA lines. As a result, it remained at risk of dropping below the $1,784.45 mark and plummeting towards $1,700.

Technical indicators on ETH’s daily chart supported the bearish thesis, with the 9-day EMA line recently crossing bearishly below the 20-day EMA line. Furthermore, the daily RSI was also flagging bearish with the daily RSI line trading below the daily RSI SMA line.

However, ETH closing above the $1,784.45 level for the next 48 hours will result in a change in momentum. This will then result in ETH’s price climbing to $1,942.32 in the coming week.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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