Both Bitcoin and Ethereum have entered phases of consolidation for the past two weeks, although both have tried to break above and below their respective medium-term price ranges.
Ethereum could continue its consolidation for the time being as a large holder with a large amount of ETH has come up for sale.
This can prevent the cryptocurrency from rising in the short term and signals that there are holders of the coin who are not ready to let Ethereum rise any more.
Ethereum sees big selling wall
According to crypto trader “Cyrii”, there is a unit or group of traders selling over 32,000 Ethereum, currently valued at around 40,000,000 USD on Bitfinex’s Ethereum / USD market.
This is by far the largest entry / wall on the order book in this market.
Someone who sells $ 32,000 ETH on Bitfinex ETH / USD
$ 32,000 ETH = $ 40,000,000
Credit @truenomic pic.twitter.com/HrlD4lPoGL
– cyrii_MM @ 拉 盘 (@cyrii_MM) January 23, 2021
More recently, analyst Nik Yaremchuk noted that there is still pressure to sell worth 25,000 Ethereum. As can be seen in the graph he shared, not a single trade has been printed above the $ 1,250 level as the sale has not yet completed that sell order.
It may be that this selling wall is related to a big claim that was made in Bitfinex’s margin book a few weeks ago.
As the crypto asset analyst “Light” noted, the $ 1.7 billion that an unknown company has long opened on Bitfinex has shrunk in the last few days due to a so-called “claim”.
A claim on Bitfinex is that a margin trade is converted to an exchange trade, which means that the cost of raising capital to the lender is paid.
This means that the trader held a large ETH spot position and may now settle it.
This selling pressure in the Ethereum markets comes despite the fact that the cryptocurrency is showing strong trends in the chain.
As previously reported by this outlet, Spencer Noon, an investor in the crypto-focused venture company Variant and on-chain analyst, cites a number of on-chain trends that indicate that Ethereum will “exceed its all-time high”.
- Ethereum’s transaction fees are more than double that of Bitcoin, suggesting for some that it is one of the most useful, if not useful, crypto-asset and blockchain networks.
- The value that is transferred to Ethereum via stablecoins, ETH itself and other tokens exceeds Bitcoin and is far above that of other blockchains. This is largely due to the strength of the DeFi space and the rise in stablecoins, of which the Ethereum network is now valued at over $ 20 billion, excluding algorithmic stablecoins.
- With around 550,000 (moving 90-day average), Ethereum has an all-time high of daily active addresses.
- Ethereum saw a strong inflow of capital in its native decentralized financial applications, with the total value locked in DeFi reaching more than $ 25 billion.
Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in the assets mentioned in this article. The views displayed in this article are the opinions of the author – and the author only.
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