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Ethereum (ETH)'s recovery could stall as the broader digital currency ecosystem faces collapse and mild volatility. This is due to recent activity discovered by crypto transaction tracking firm Whale Alert. According to the data shared, the whale moved 13,406 Ethereum to Coinbase, the largest cryptocurrency exchange in the United States.
Should I sell Ethereum first?
Established digital currencies are more likely to experience large whale trades. Users or ETH holders can move funds for a variety of reasons that are rarely reflected on-chain, but moving to an exchange usually means selling.
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The 13,406 ETH sent to Coinbase is worth approximately 32.6 million. While this isolated trade will not impact the Ethereum market as a whole, the selling could dampen sentiment and further strengthen the related selling in the short term.
Over the past few weeks, Ethereum has continued to decline. Although most retail sales are not tracked, whale entity activity is still visible. Ethereum Foundation (EF) is one of the likely top sellers of ETH.
As U.Today previously reported, EF sent 2,500 Ethereum to Bitstamp on Tuesday in what many saw as a liquidation attempt. Over the past few months, the Ethereum Foundation has conducted a series of related sales.
In justifying the sale, the organization hinted that it would free up funds to meet operational needs.
Pressure on ETH price
At the time of writing, Ethereum price is flat at 0.14% in view of rapid growth. The value is pegged at $2,437.74 and the growth rate over the past week is also flat.
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However, if bearish concerns intensify in the short term, bears could take over the coin. Conversely, the relative strength index (RSI) for this coin is pegged at a neutral mark of 51. This means that the actions of bulls and bears have offset each other in the short term.
Going forward, investors will be watching Bitcoin whales and price movements, as well as inflows into Ethereum ETF products, to gauge their level of interest and risk exposure.
