A significant event has occurred in the Ethereum market: an old ICO wallet transferred 2,000 ETH to the Binance exchange. This move has sparked interest among analysts and investors as it highlights current trends and potential changes in market dynamics.
Transfer of ETH and Its Significance
A wallet associated with Ethereum's ICO made a transfer of 2,000 ETH (worth over 5.2 million dollars) to Binance after nearly a decade of holding tokens. This transfer represents an 8,367x return on the initial purchase of only $622. A smaller transaction was previously recorded from this address, indicating a phase-by-phase reactivation.
Exchange Behavior and ETH Supply
On-chain indicators reveal a continuous decrease in Ethereum supply on exchanges. Currently, a total of 18.6 million ETH is held on exchanges compared to over 30 million in mid-2022. Negative netflows reflect a lack of willingness from investors to deposit ETH on exchanges, waiting for clearer market signals.
Technical Analysis and Predictions
A cup-and-handle formation is emerging on Ethereum's weekly chart, potentially signaling a future breakout. There is resistance at the $2,950 level, and breaking through may lead to Ethereum reaching approximately $4,204 by the end of the year, aligning with historical market movements.
The recent transfer of 2,000 ETH by a significant holder and declining exchange supplies may indicate accumulation and the potential for future price growth of Ethereum.
