Ethereum (ETH) Dips 5% Amid High Exchange Inflows, Key On-chain Metrics to Watch

[RSRS]

After flirting around $3,300 levels earlier this weak, there’s some profit-booking visible in Ethereum (ETH). As of press time, ETH is trading 5% down at a price of $3,173 and a market cap of $371 billion. This comes amid the high ETH deposits taking place at the exchanges.

As per on-chain data provider Santiment, a total of 779,880 ETH were sent to the exchanges on Monday, August 23. This was the highest ETH exchange inflow in the last two months since June 21st. Thus, the data provider attributes the ETH price slide as a direct outcome of this.



Besides, Santiment also points out to a particular address that has been sending the maximum ETH to the network. The data provider notes:

Sent 600,000 ETH to Binance. Last acquired ETH on July 2nd at ~$2k. So huge that it breaks overall ETH exchange flow charts. Based on its behavior so far, it doesn’t look like an undiscovered exchange wallet.

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[Fenix]

It is assumed that as a result of the renewal of the ethereum network that has been taking place for about a year now, the price of this coin will rise sharply. I wonder then, what's the point of sending 600,000 ETH to someone on Binance? It does not indicate whether ethereum is being exchanged for stablecoins, that is, for the alleged withdrawal of funds from this market, or another cryptocurrency is being bought. Of course, everyone has their own life circumstances and their own personal plans. However, it is all the same, it seems unreasonable to get rid of so much ethereum now. It is quite possible that, given the amount of ethereum that has appeared for sale, the price of this coin is not currently growing very actively compared to other coins. We will consider this a temporary phenomenon.