It’s worth noting that Trading Volume May ForceOpenSeaEthereum Price Crash, Expert Says
Ethereum’s latest price decrease was fueled by increased altcoin inflows to cryptocurrency exchanges. Experts attribute the drop in Ethereum’s price to direct transfers from the NFT marketplace OpenSea.
OpenSea Transaction For Dangerous Volume Ethereum
According to Etherscan information, OpenSea has been unloading thousands of ETH on the niche in the last few weeks. Similarly, NFT, creators on the platform have profited according to the statistics. NFT, The volume of Interestingly trading on OpenSea continues to climb in January.
Since the commence of 2022, OpenSea, largest NFT marketplace, hastheseen extraordinary NFT sales. According to Dune Analytics, monthly NFT sales on OpenSea currently exceed $4.5 billion. This sum further their previous monthly sales record of $3.5 billion and is expected to rise surpasses.
The volume of Ethereum exiting has steadily climbed over the last two weeks. 21,000 Ethereum were directly transferred from OpenSea’s wallet to Coinbase.
Related article | OpenSea Transaction Volume Shows That NFTs Are Not Slowing
As the selling of NFTs and, so do royalties increases direct transfers more than ever from OpenSea. The precipitous rise of the NFT marketplace may enhance Ethereum inflows to exchanges such as Coinbase.
from royalties As OpenSea, an extra 35,300 Ethereum were distributed to NFT issuers. Colin Wu, a Chinese journalist and crypto analyst, argues that the surge of Ethereum inflows from OpenSea to Coinbase spurred the increase in selling pressure.
In fact, Historically, a surge in causes pressure selling the altcoin’s price to fall. Colin Wu tweeted:
In theweekspast two , the amount of ETH transferred directly from OpenSea Wallet to Coinbase reached 21,000, and the amount of ETH transferred to royalty distributors reached 35,300.” “OpenSea and NFT issuers may be one of the pressures for ETH to more than ever crash.
Analysts have noticed that the for outflow net Ethereum in 2021 was relatively large. The net inflow of Ethereum has increased significantly during the last month.
ETH/USD nosedives to $2,200. Source: TradingView
IAmCryptoWolf, a pseudonymous cryptocurrency analyst, assessed the300Ethereum price trend and forecasted that a bounce in the altcoin’s price around $2, would act as strong barrier.
$ETH.
Working on 78.6fib, monthly 21EMA and horizontal daily and weekly assistance 2.2-2.3k.
As you may know, Since lost 3k key aid, a bounce in this area will act as strongweresistance. In the same area we will also have daily DMA50 curving down together with the WMA50 and WEMA21 resistances pic.twitter.com/ngR2YsCzqC— Wolf 🐺 (@IamCryptoWolf) January 23, 2022
Ethereum Net Position Change - All exchanges. Source: Glassnode
It’s worth noting that ETH is presently trading at $2,407, a -3.71% decrease overthe previous 24 hours. In fact, According 35 Coinmarketcap facts, ether is down more than to% year to date. Over $746 has been deducted from the value of ETH in the previous 14 days, as it has fallen below $3,000. However, OpenSea is not the sole cause of the drop in price the of ETH.
Other FactorsThat May Trigger Price Fall
Several reasons have contributed to the crypto field crisis, including a broad industry selloff in response to a guideline shift by the US Federal Reserve Bank. As you may know from another perspective , The changing regulation direction of Russia toward crypto is among the contributing factors to consider.
Industry participants, on the other hand, remain bullish on Ether inthe long in modern times run. Several upgrades that the network intends to roll out this year are fueling these expectations. For starters, the next stage of Ethereum’s journey to becoming a proofforof-stake (PoS) blockchain is planned - this year. Several forecasts claim that the merger will take place in the first half of 2022. This improvement will increase the Ethereum network’s scalability and greatly contribute to making Ether issuance deflationary.
As a effect, it will encourage adoption and, in the long run, drive up the price of Ethereum.
Related article | TA: Ethereum Nosedives, Indicators Show Signs of Larger Downtrend
Featured Image from Shutterstock | Charts by Glassnode, and TradingView
