Cryptocurrency trader expects Ethereum (ETH) prices to decline or slow down on head days. This comes after on-chain watch, LookOnChain, revealed that more ETH holders are moving coins to centralized cryptocurrency exchanges like Binance and Kraken.
Ethereum prices are uniting
Currently, ETH price is consolidating with reaction points between $1,800 and $2,015 based on the price action of the past two weeks.
according to CoinMarketCapETH is down 1.8% over the past 24 hours and is trading at $1,908 at the time of writing.
Due to the lackluster performance in the past few days, the cryptocurrency leader’s weekly performance has been almost flat against Bitcoin (BTC).
Ethereum’s volatility is also declining, with Bollinger Bands, a technical indicator used to measure volatility, appearing to be converging, according to developments in the daily chart.
Ethereum transfers, rising fees, and PEPE mania
Last week, Ethereum co-founder Vitalik Buterin transferred nearly $500,000 worth of Ethereum. Moments later, the Ethereum Foundation, a team building the smart contracting network, moved $30 million worth of coins.
Usually, currency transfers to centralized exchanges are associated with liquidation. It remains to be seen if Ethereum prices will drop in the weeks or months due to bearer selling.
Rising ETH transfers to exchanges coincide with rising gas fees. This event can be attributed to the current meme coins craze. Fear of missing out (FOMO), pepe coin (PEPE), is a major driver of high gas fees.
However, as the gas fee goes up, more coins are burned as stipulated after the EIP-1559 upgrade. Ultimately, this will, in the long run, lead to a shrinkage of Ethereum.