The ether/bitcoin ratio fell to a 14-month low as large token holders, including Ethereum co-founder Vitalik Buterin, moved the coins to crypto exchanges, perhaps as a prelude to the sale.
ETH-BTC fell to near 0.0602 on Tuesday, according to TradingView data, its lowest value since July.
The recent price action extended a trend that began in September 2022, confirming some bearish analyst forecasts for the second-largest cryptocurrency by market capitalization.
Marcus Thielen, head of strategy and research at Matrixport, said on CoinDeskTV on Monday that Ethereum protocol revenue has declined over the past three months and expects BTC to continue to outperform the broader cryptocurrency market. cryptography, including ETH.
Popular crypto analyst Benjamin Cowen, founder of IntoTheCryptoverse, noted in a X post that a potential breakdown in the valuation of ETH against BTC could be considered.
The latest price drop came as some high-profile investors – also known as whales – recently deposited a total of $60 million worth of ETH onto crypto exchanges, raising alarms about further price reductions.
Market participants closely follow the moves of chain whales as they are considered knowledgeable and have a considerable impact on the market. Depositing assets on an exchange generally signals an intention to sell, while withdrawals suggest accumulation.
Most recently, Vitalik Buterin, co-founder of Ethereum, transferred 300 ETH – worth around $493,000 – to Kraken on Tuesday, according to blockchain data. noted by security company PeckShield. Although the deposit is rather small, it has sparked speculation among crypto observers given Buterin’s stature for Ethereum.
Another large holder deposited a total of 30,000 ETH – worth almost $50 million – on crypto exchanges Binance, OKX and KuCoin in the last four days, according to blockchain sleuth Lookonchain. note.
This entity received approximately 255,000 ETH during the ICO, now worth $423 million, Lookonchain noted. Since the initial price of the token was around 31 cents, selling the coin now at $1,650 would represent a profit of 527,000%.