The significant ETH movements to liquid exchanges have alarmed observers. Such substantial bitcoin deposits frequently come before significant liquidations.
Staking has also caused Ethereum holdings on exchanges to drop to multi-year lows. The quick flood of ETH increases the danger of slippage if the entities dump their holdings because there is minimal sell-side liquidity.
The reasons for over-the-counter transactions are still unclear, though. Wallets can just be rearranging money for different purposes.
It's still unclear at this point if there will be real liquidations or if this is merely a preventative move. If the transfers indicate a bearish purpose, the market is on the lookout for more volatility due to the potential selling power.
