On Saturday, ETH joined the broader crypto market in the red, falling 4.81% to end the day at $1,900. News related to Binance and the Ethereum wallet movement weighed on investor sentiment.
Ethereum (ETH) fell 4.81% on Saturday. Partially reversing a 6.28% gain on Friday, ETH ended the day at $1,900. Despite the bullish session, ETH retested the $2,000 level for the second time since April 19.
A bullish start to the day saw ETH rally as high as $2,020 in the first hour. Missing the first major resistance level (R1) at $2,039, ETH fell to a mid-afternoon low of $1,864. ETH fell through the first major support level (S1) at $1,915, before a partial recovery to close the day at $1,900.
Vitalik Buterin and the Ethereum Foundation Return ETH to Less Than $1,900
Investor bullish sentiment toward the US economy and the Federal Reserve was short-lived on Saturday. Following a high in the first hour of the session, investors turned their attention to the US regulatory landscape, as well as to the ETH wallet movement.
On Friday, news broke that the US Department of Justice was investigating Binance for possible violations of sanctions against Russia. While crypto investors may withstand increased regulatory scrutiny, the discovery of a sanctions breach would give the US administration a solid footing to push the anti-crypto movement forward.
The repercussions of a breach could spread beyond US borders. European investors and regulators may also respond to any discovery that Binance facilitated sanctions evasion.
On Saturday morning, investors also identified the ETH wallet move that prompted a sell-off. Ethereum co-founder Vitalik Buterin and the Ethereum Foundation may have contributed to a cryptocurrency sell-off. Reports from the Ethereum Foundation that it sent 15,000 ETH to Kraken in response to a Buterin transfer of just 200 ETH to Kraken were bearish.
While the numbers are paltry, the combination of an ETH transfer from Buterin and the Ethereum Foundation to Kraken spooked investors. In November 2021, the Ethereum Foundation sent 20,000 ETH to Kraken. Significantly, the move came days after an ETH ATH high of $4,868, and it preceded a collapse of ETH to a June 2022 low of $879.80.
Although the transfer of ETH from the Ethereum Foundation to Kraken was bearish, the participation statistics remained upbeat. However, an increase in withdrawals contributed to Saturday’s losses.
ETH Stake Stats Remain Bullish Despite Saturday Loss
Betting statistics did not provide support despite the bullish numbers. According to CryptoQuant, stakes increased from 67,296 ETH on Friday to 176,960 on Saturday. Inflows reached their second highest level since the Shapella update.
The total value staked continued to rise despite ETH returning to below $1,900, supported by betting inputs.
Overnight, the withdrawal profile was more bearish. A higher projected volume of capital withdrawals was an indicator of bearish price. Participation flows failed to generate a positive net participation balance. On Saturday, the net stake balance stood at a deficit of 7,630 ETH, equivalent to $14.49 million. Deposits totaled 71,860 ETH against withdrawals of 79,490 ETH.
According to TokenUnlocks, the total pending withdrawals were 0.265 million ETH, equivalent to approximately $0.501 billion. Participation statistics and withdrawal profile will continue to influence investor sentiment. This morning, withdrawal projections are bearish for the session, with major withdrawals projected to reach higher levels.
By Audy Castaneda
