Matrixport Moves $452M in ETH as Ethereum Hits New High, Sell-Off Ahead?

Crypto firm Matrixport looks to be selling Ethereum, following recent transfers to Binance and OKX. It moved 2,354.6 BTC ($272 million) off both exchanges. This has led to speculations that Matrixport is selling Ethereum to purchase Bitcoin.

Matrixport Moves $452 Million In Ethereum To Binance and OKX

In an X post, on-chain analytics platform Lookonchain drew the community’s attention to these transfers, which occurred today. Wallets linked to the crypto firm deposited 95,873 ETH ($452 million) into Binance and OKX.

Matrixport-linked wallets also withdrew over 2,300 BTC ($272 million) from Binance and OKX. Analysts translate this to the exchange of ETH and BTC. The migration comes in line with the flight into BTC in times of market uncertainty.

The transfers introduced the debate on the effect of whale activity on the price. Whereas some believe this balancing of portfolios, others are concerned that this would have a negative impact on ETH prices in the short term. The company has provided no statement so far.

Notably, these transfers come as the Ethereum price rallied to a new all-time high (ATH) on August 22. The ETH rally occurred on the back of Jerome Powell signalling a dovish Fed shift, with a rate cut more than likely to happen in September.

ETH Price Action Amid These Transfers

Ethereum has held its ground despite the whale activity. At press time, the ETH price trades at $4,720, down slightly for the day. The price still trades above last week’s low of $4,500, showing relative strength.

The technical experts emphasize that the current zone of support is the value of 4,650. Should Ethereum continue to maintain the position above, bulls stand to recoup the situation. A breach below could signal weakening sentiment.

Moreover, market confidence comes from growing bullish narratives. They are comprised of ETF optimism and network upgrade progress. Still, large-scale transfers like Matrixport’s could add volatility risk in the short run.

CoinGape’s recent analysis highlights optimism on ETH’s trajectory. It pointed to a “bull flag” chart pattern forming on ETH’s daily chart. The analysis sees the pattern as a setup for a breakout beyond $5,500, despite BlackRock’s $272 million sell-off of ETH.

Another analysis warned of a bearish potential. It noted that whale booking profits could cause Ethereum to decline to $4,000. This perspective relies upon the fall in Spot Taker CVD and increasing selling pressure.