Fidelity Deposits 64997 ETH on Coinbase: Sell-Offs Begin?

Fidelity has recently transferred significant amounts of Ethereum (ETH) to Coinbase, raising fears of a potential sell-off in the market. Within the past 24 hours, Fidelity, via Cumberland, deposited 31,249 ETH, valued at $103.55 million, including an 11,250 ETH deposit worth $36.9 million in the last 20 minutes.

These large-scale institutional transfers to centralized exchanges often indicate intentions to sell, potentially exerting downward pressure on Ethereum’s price.

As Ethereum’s price hovers at $3,245, traders and analysts are monitoring on-chain activity and technical patterns closely. The movement of such large quantities of Ethereum suggests possible liquidation, which could influence market dynamics significantly in the coming days.

Institutional Deposits and Market Implications

A rise in institutional deposit on exchanges such as Coinbase commonly leads to increased supply of the assets in the market and could signal a possibility of selling pressure. In the most recent transaction close to press time, Fidelity deposited another 64997 ETH worth $213 million to coinbase.

In particular, large transfers from institutions generate market expectations of increased selling pressure and contribute to price falling. The latest activities by Fidelity only feed these worries because the market looks quite frail at the moment.

The inflow of Ethereum can be associated with a rise in trading activity on Coinbase, indicating that institutions are either going to sell their assets or carry out massive transactions. When the supply also escalates in the exchanges with no a matching demand, the prices are likely to be subjected to further downward pressure.

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This also has psychological impacts on the market as the traders believe these moves to be bearish. It can cause early selling by those investors with small holding, which, in turn, will put more pressure on the price of Ethereum.

Ethereum Chart Analysis: Double Top Pattern

Analyzing Ethereum’s daily chart, there is the formation of the Double Top pattern that is a bearish reversal pattern that signifies a downward price action.

The pattern has two high points just above the $4,000 mark, then a low point and a possibility of a breakdown through the neckline at $3,200. This technical formation represents a reversal of an up trend that indicates a bearish breakout is possible.

In case the price drops below the $3,200 support level the Double Top pattern estimates the target at $2,750.

Present price trend indicates a rising bearish pressure, the RSI of Ethereum stands at 39.48 which signifies that seller pressure is increasing.This is below the middle of the neutral range of 50, but traders may look for oversold conditions below 30 to take some short term profit.

Implications of the Move by Fidelity

Increased flows of ether to wallets linked to institutions like Fidelity could be an indication of increased trading interest or build up before large purchases or sales. These moves, although pointing to the growth in supply, also show the rising participation of institutions in the cryptocurrency market.

This is why traders need to pay attention to on-chain information and the technicals. Whether the market will view these deposits as a signal for selling or as a part of larger market trends will define the price of Ethereum in the next few days.

As Ethereum approaches critical support levels, the market is still quite sensitive. Traders should keep an eye on Fidelity’s further actions and other institutional investors to determine the further trend of the market.