Huge Ethereum VC Withdrawals Spotted, More ETH Selloff Underway?

Lookonchain, an on-chain crypto analytics platform, revealed that Fenbushi Capital and Galaxy Digital, two prominent Venture Capital firms withdrew ETH from the Binance crypto exchange. According to the transaction details, Fenbushi Capital withdrew 5,207.4 ETH worth approximately $17.2 million, while Galaxy Digital withdrew 6,000 ETH valued at about $19.8 million.

Both Fenbushi Capital and Galaxy Digital withdrew $ETH from #Binance after the market dropped.
Fenbushi Capital withdrew 5,207.4 $ETH($17.2M) from #Binance 11 hours ago.
Galaxy Digital withdrew 6,000 $ETH($19.8M) from #Binance 4 hours ago.
— Lookonchain (@lookonchain) April 3, 2024

It’s worth noting that these withdrawals occur at a significant moment as Ethereum‘s price is presently decreasing. According to CoinMarketCap, Ethereum is now priced at $3,315, representing a 7.25% decrease over the past week. Furthermore, the cryptocurrency’s market capitalization has dropped by 0.29% within the last 24 hours, now standing at $398 billion.

Recent withdrawals made by Fenbushi Capital and Galaxy Digital from Ethereum have sparked debates about a possible mass sale of Ethereum and its potential impact on the market. Nevertheless, it’s essential to remember that not every withdrawal leads to immediate selling pressure.

The moves made by VC firms like Fenbushi Capital and Galaxy Digital might signify shrewd investment tactics. It’s plausible that they’re transferring their ETH funds to safer storage alternatives, such as hardware wallets or cold storage, for enhanced security.

The two businesses might be using their pulled-out resources in Decentralized Finance (DeFi) or staking platforms on Ethereum. By engaging in these initiatives, these corporations may aim to increase their Ethereum assets and generate extra revenue.

Recently, the Ethereum network reached a milestone with over 1 million active validators. The combined value of their staked Ethereum amounts to around 32 million ETH, currently equivalent to roughly $114 billion in market value.

Factors Contributing to Ethereum’s Price Dip

The cost of Ethereum dropping recently aligns with the crypto market’s overall downturn. Bitcoin (BTC), the leading digital currency, experienced a significant decrease in value, going from roughly $70,000 to $66,051 within a week – representing a fall of around 6%.

On the X social media site, cryptocurrency analyst Ali Martinez recently shared an update. He mentioned that Bitcoin‘s TD Sequential indicator had triggered a sell signal, suggesting a possible price correction. According to Martinez’s prediction, this downturn could last between one and four weekly candlesticks, meaning the bearish trend might persist for several more weeks.

The TD Sequential indicator signals a potential sell opportunity on the #Bitcoin weekly chart, suggesting a possible correction lasting between one and four weeks.

— Ali (@ali_charts) April 1, 2024

With respect to Ethereum’s downturn, Ali pointed out that there isn’t enough backing at the price level of $3,460. This observation makes it more probable for Ethereum to experience a decline towards $2,850 or even lower.

A significant reason for Ethereum’s price drop could be the doubt surrounding the imminent rollout of an Exchange-Traded Fund (ETF). According to Eric Balchunas, Bloomberg’s ETF expert, there is only a 25% chance that an Ethereum ETF will debut in May. Balchunas pointed out that the Securities and Exchange Commission (SEC) has yet to respond to applications for such funds, indicating a low likelihood of approval at this time.

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2024-04-03 16:30