The recent activities of major trading firms have impacted the Ethereum market, with significant ETH transfers to exchanges leading to changes in price levels and demonstrating technical weaknesses.
Major ETH Transfers
Within 24 hours, three trading firms, including Polychain and Galaxy Digital along with B2C2, executed ETH transfers exceeding $40 million to centralized exchanges. Polychain transferred 5,700 ETH valued at approximately $9.2 million, Galaxy Digital moved 12,500 ETH worth $20.3 million, and B2C2 transferred 6,540 ETH valued at $10.7 million.
Price Technical Analysis
Ethereum's price fell below the critical $1,600 level, which has turned into resistance. Technical indicators indicate negative market momentum. The Relative Strength Index shows weak buying strength at 38.9, while all major moving averages suggest sell signals. There are hints of upcoming recovery, but a lack of support between $1,600 and $1,620 increases the possibility of price drops down to $1,500 or even $1,450.
Ethereum Network Status and Competition
The Ethereum network's activity continues to decline, supported by DeFiLlama's analysis that indicates a loss of $70 billion in total value locked, now amounting to $46 billion. Monthly network revenue has significantly dropped from $109 million in January to $7.2 million in March. At the same time, competing blockchains like Solana and Tron are successfully attracting new users, further diminishing Ethereum's market position.
Thus, Ethereum faces increasing pressure both from the significant ETH transfers to exchanges and from deteriorating network metrics along with growing competition from other blockchains.
