Ethereum [ETH] may be trying to recover from its recent rally, but the massive sale has put its chances in doubt. A large amount of ETH has reportedly been sold from an address owned by Fidelity.
According to a recent Lookonchain analysis,
#Fidelity transferred 64,997
#ETH to Coinbase. This happened on Friday, and the value of the transferred ETH is reportedly worth more than $213 million. The transfer came after a bearish week where the
#cryptocurrency had already experienced a significant pullback during the week.
the transfer from a private wallet to an exchange suggests that Fidelity is getting rid of ETH. This came on the same day that the
#Ethereum ETF recorded net outflows totaling $159.4 million. Unsurprisingly, Fidelity's FETH ETF recorded the largest outflow among ethereum ETFs on Thursday - $147.7 million.
Is Fidelity's ETH sell-off a reflection of market sentiment?
ETH has been under net selling pressure since Tuesday, and this trend continued on Friday, the same day Fidelity moved the aforementioned coin. Thus, it fell 15.54% from its weekly high to its weekly low.
At the time of publication, ETH is at USD 3,308, thanks to a 2.89% rise in the last 16 hours. This slight recovery suggests that demand has returned after Friday's close. As a result, there has been some accumulation after a week-long decline.
But will cryptocurrencies be able to sustain this growth? That will depend on the level of demand and who is buying - Onchain's data confirmed that whales were buying last fall. For example, on January 9, large holders had inflows of 547,230 ETH and outflows of 321,650 ETH.
If demand from whales increases, ETH could recover over the weekend. Even exchange flows suggest that cryptocurrencies are in a state where demand could return.
Exchange flows have recently fallen to levels last seen in early November. According to CryptoQuant, cryptocurrency outflows at the time of writing totaled 227,955. This is a slight increase to 256,829.05 ETH from 58 ETH.
Read us at:
Compass Investments #FinTechInnovations