Over the past week, Ethereum (ETH) registered the highest inflows into centralized exchanges (CEX) in the past two months. These significant asset movements have suggested a potential price dip for ETH.
CoinGecko data shows that the second-largest cryptocurrency has been experiencing a slight price decline, losing 2.5% of its value in the past week. As of this writing, the Ether token changes hand at $1,892.65, with a negligible 0.2% gain in the last 24 hours.
Ethereum Registers $383 Million Worth Of ETH In CEX Inflows
According to data from IntoTheBlock, Ethereum witnessed the largest inflows into centralized exchanges in the past two months. The data analytics platform found that at least $383 million worth of ETH was deposited into these exchanges.
IntoTheBlock also revealed that a significant percentage of the CEX inflows came from a single address and in a single transaction. This deposit came from an old wallet that accumulated 61,216 ETH during the Ethereum Initial Coin Offering (ICO).
This pre-mine wallet had been dormant for eight years, with its constituent ETH worth more than $116 million untouched. On Wednesday, July 19, this address became activated, and its stash of Ether tokens was abruptly moved to another address associated with the Kraken exchange.
Data from Whale Alert shows that a significant amount of Ether tokens has been transferred to crypto exchanges by several whales over the past week. Notably, more than 200,000 Ether tokens have been transferred to Coinbase in separate transactions within this period.
Indeed, the movement of massive amounts of ETH to centralized exchanges can signal impending selling pressure, which can drive the asset’s price down. However, not all large transfers to an exchange precipitate a downward price movement, as the whales might not intend to sell immediately or all at once.
Total ETH Staked Reaches All-Time High
The Ethereum network has been experiencing a steady increase in the total amount of ETH staked on the blockchain. According to data from IntoTheBlock, this figure has reached $52.3 billion, representing its highest value ever.
The data analytics company also noted that with an increasing amount of staked ETH, the Ethereum blockchain is bound to become even more secure, as there will be a corresponding decrease in the risk of the network being taken over by a single entity.
It is worth noting that this surge in staking activity can be linked to the successful launch of the Shapella upgrade. The Shapella upgrade offered a new dimension to ETH staking, as investors can now lock and unlock their assets at will.
This increased flexibility eliminated a substantial portion of risk that has been attributed to ETH staking in the past.
ETHUSD trading at $1,886.82 | Source: ETHUSD daily chart from TradingView
Featured image from Getty, chart from TradingView