Things are not going well for the Ethereum price after the network switched to Proof-of-Stake last Thursday. The highly anticipated Merge turns out to be a true ‘buy the rumor, sell the news’ event. Also today, large amounts of Ethereum are flowing towards the stock exchanges.
270,000 Ethereum on sale?
Whale Alert is an account on Twitter that monitors large transactions. In the past few hours, it has reported three huge transactions, with one in particular standing out. At the time of writing, it has been just over 4 hours since 250,000 Ethereum was sent to Binance in one transaction.
At the time of the transaction, it was valued at $338 million. It is hoped for the market that these coins were not sent to Binance for sale. Previously this was the only option, but nowadays it is also possible to stake tokens in the new Proof-of-Stake network via Binance.
Just before that, 20,000 Ethereum was sent to FTX, the trading platform of CEO Sam Bankman-Fried, in two separate transactions. That transactions are worth approximately $28 million.
The Ethereum rate
While most Ethereum supporters hoped for a revival after the successful implementation of the new Proof-of-Stake consensus mechanism, the reality turned out to have a different plan. Now hopes are pinned on the Federal Reserve. Popular crypto influencer Lark Davis expects a rally if the US central bank raises interest rates by ‘only’ 0.75 percent on Wednesday.
We may well see a rebound then, as there is also a chance that the Federal Reserve will raise interest rates by 1 percent. If they choose to do so, the markets are likely to plunge again and we should fear new lows. So it will be a bit of a squeeze until Wednesday 20:00 Dutch time, because then the Federal Reserve will come with the new interest rate decision.