Galaxy digital’s $24.3M ETH transfer to Binance

Cryptocurrency markets experienced a downturn as Ether ($ETH) dropped by 1.82%, testing a critical support level at $2,145.

This price decline triggered a substantial transfer of 11,200 $ETH, valued at $24.3 million, from Galaxy Digital to Binance, as reported by on-chain tracking platform Lookonchain. In this article, we explore the recent developments in the $ETH market and analyze its technical outlook.

Market downturn and Galaxy digital’s transfer

Ether ($ETH), the second-largest cryptocurrency by market capitalization, faced a 1.82% drop in its price, aligning with the broader market’s 2.27% decline over a 24-hour period. At the time of writing, $ETH was trading at $2,172.69, according to CoinMarketCap, pushing its weekly performance to a loss of -2.97%.

In a notable development, Galaxy Digital executed a significant deposit of 11,200 $ETH, valued at $24.3 million, to the popular cryptocurrency exchange, Binance. The reasons behind this sizable transfer remain undisclosed, but it coincided with $ETH’s price drop, raising questions about the intentions behind the move.

Technical analysis and support levels

From a technical standpoint, $ETH faced resistance at the $2,300 level in recent days. This resistance led to a downward movement, placing $ETH within the lower boundaries of a medium-term positive price channel that had formed over the previous weeks. Additionally, $ETH found support at the $2,145 level.

The critical question now is whether $ETH will break below this support level, potentially exposing it to further downside pressure and a subsequent support level at $1,985.53 within the next 48 hours. However, if $ETH can close today’s trading session above the $2,145 mark, a more bullish scenario may emerge, with the cryptocurrency potentially challenging the $2,300 resistance level in the coming week.

Continued buying pressure could further strengthen $ETH’s position, potentially propelling it above the $2,300 resistance level and paving the way for a short-term target of $2,615.

Increased trading volume

Despite the price drop, Ether ($ETH) experienced a notable increase in trading volume, which surged by more than 22% to surpass $8 billion. Such a significant uptick in volume amid a price decline suggests that selling pressure may have been the driving force behind this surge in trading activity.

The cryptocurrency market, led by Ether ($ETH), has faced a recent price decline, with $ETH testing a crucial support level at $2,145. This decline triggered a substantial transfer of 11,200 $ETH, worth $24.3 million, to Binance by Galaxy Digital. While the reasons behind this transfer remain unknown, it coincided with $ETH’s price drop, raising speculation about the motives behind the transaction.

From a technical perspective, $ETH’s ability to maintain its position above the $2,145 support level will be closely monitored. A break below this level could expose $ETH to further downside risk, with a potential target at the $1,985.53 support level. Conversely, if $ETH manages to close above $2,145, a more bullish scenario could emerge, with a challenge of the $2,300 resistance level on the horizon.

Despite the price decline, $ETH witnessed a notable increase in trading volume, suggesting that selling pressure may have been the driving factor behind the recent market activity. The cryptocurrency market remains highly dynamic and influenced by a range of factors, making it crucial for investors and traders to stay vigilant and adapt to changing conditions.