On-Chain Data Shows a Whale Was Behind ARB and ETH Price Drops

The blockchain tracking firm Lookonchain mentioned in a tweet this morning that a whale was responsible for the recent price drop in Arbitrum (ARB) and Ethereum (ETH). According to the post, this whale had transferred 2.77 million ARB and 21K ETH to Binance in the past 24 hours.

Who dropped the price of $ARB and $ETH?

A whale transferred 2.77M $ARB ($3.37M) and 21K $ETH ($39M) to #Binance 9 hrs ago.

After that, the price of $ARB plummeted ~9%, and the price of $ETH dropped ~2%.

Then he withdrew 15.9M $USDT from #Binance 40 mins ago. pic.twitter.com/HwW9SUiupc

— Lookonchain (@lookonchain) May 9, 2023

Shortly after the two transfers were processed, ARB’s price plummeted approximately 9%, while ETH dropped around 2%, the tweet added. The whale then withdrew 15.9 million Tether USD (USDT) from Binance this morning.

The entire crypto market was down 1.91% over the past 24 hours according to CoinMarketCap. As a result, the global crypto market cap was estimated to be $1.14 trillion at press time. Looking at ETH and ARB, ETH was able to recover slightly and was down 1.21% while ARB was down 6%. ETH was trading hands at $1,839.81 and ARB’s price stood at $1.10.

ARB also weakened against BTC during the same period. At press time, ARB was down 3.86% against the leading crypto. ETH, on the other hand, was able to outperform BTC by 0.96%.

Daily chart for ETH/USDT (Source: TradingView)

ETH’s price continued to trade within the consolidation channel between $1,784.85 and $1,942.32. The altcoin’s price was, however, resting on the lower band of the price channel and was also trading below the 9-day and 20-day EMA lines. As a result, it remained at risk of dropping below the $1,784.45 mark and plummeting towards $1,700.

Technical indicators on ETH’s daily chart supported the bearish thesis, with the 9-day EMA line recently crossing bearishly below the 20-day EMA line. Furthermore, the daily RSI was also flagging bearish with the daily RSI line trading below the daily RSI SMA line.

However, ETH closing above the $1,784.45 level for the next 48 hours will result in a change in momentum. This will then result in ETH’s price climbing to $1,942.32 in the coming week.

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