Breaking: ETH Drops to a Key Support; Triggers 11.2K Transfer to Binance

The on-chain tracking platform Lookonchain revealed in an X post this morning that $24.3 million worth of Ether (ETH) was sent to Binance earlier today. According to the post, Galaxy Digital was the entity that made the substantial deposit of 11,200 ETH to the leading cryptocurrency exchange in the past few hours.

Note that #GalaxyDigital deposited 11,200 $ETH($24.3M) to #Binance in the past hour.https://t.co/oPJdrwWcwS pic.twitter.com/n0BAyuf5hQ

— Lookonchain (@lookonchain) December 18, 2023

The deposit comes shortly after the largest altcoin in terms of market cap dropped by 1.82%. ETH’s 24-hour loss coincided with the 2.27% drop the broader cryptocurrency market suffered in the same period. Subsequently, the altcoin was changing hands at $2,172.69 at press time, according to CoinMarketCap. The latest drop in price also pushed ETH’s weekly performance to -2.97%.

ETH was, however, able to register an uptick in its 24-hour trading volume. CoinMarketCap data indicated that ETH’s volume was up more than 22% and stood at over $8 billion as a result. Given the drop in the altcoin’s price, it is reasonable to speculate that this volume was mainly sell pressure.

Daily chart for ETH/USDT (source: TradingView)

From a technical perspective, ETH was rejected by the $2,300 resistance level in the past few days. This rejection led to ETH falling to the lower barrier of a medium-term positive price channel that formed on its charts over the past couple of weeks. In addition to trading at the lower level of this price channel, the cryptocurrency was also resting on the $2,145 support.

If ETH breaks below this significant mark, then it may be at risk of dropping to the subsequent support level at $1,985.53 in the next 48 hours. This bearish thesis may be invalidated if ETH closes today’s trading session above the $2,145 mark. In this more bullish scenario, ETH may attempt a challenge at the $2,300 threshold through the course of the coming week.

Continued buy pressure could then boost ETH’s value to above this resistance level. This will give ETH the foundation needed to potentially rise to as high as $2,615 in the short term.

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