Ethereum (ETH) Drops 5% Amid Silvergate Crash as Mysterious Whale Shows ‘Very Strange’ Behavior

Author: Sohrab Khawas

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    Ethereum (ETH) price has dropped about 5 percent in the past 24 hours to trade around $1,566 on Friday. Having consolidated since mid-January, Ethereum bulls are getting outpaced by the bearish sentiments. The bearish thesis is cemented by the Ethereum price being trapped in a multi-month falling trend after rebounding four times on the weekly time frame.

    Moreover, the daily RSI shows a falling divergence and a triple price top, a characteristic of an imminent price reversal. As such, the Ethereum price could retest the $1200 support level amid the Shanghai upgrade.

    Notably, the Ether price is enjoying the immense support of the golden cross on a daily time frame after a year-long death cross. As a result, the possibility of a breakout during or after the Shanghai upgrade cannot be ruled out.

    Ethereum Price Under Whale Control

    According to on-chain analytics firm Lookonchain, the Ethereum price has reacted every time a mysterious fund with over $10 billion in reserve moved assets to centralized exchanges. For instance, the mysterious fund identified by Lookonchain withdrew $312 million in  $USDC from Circle and transferred it to centralized exchanges.

    While the mysterious fund has not been directly linked to Silvergate Capital Corp., which is on the precipice of bankruptcy, the thought cannot be ruled out. Moreover, Silvergate has previously reported a balance sheet of approximately $10 billion, similar to the mysterious fund identified by Lookonchain.

    Amid increased withdrawals by the mysterious fund, Ethereum liquidations have totaled over $47 million in the past 24 hours. Meanwhile, Coinbase Global Inc. has announced that it will no longer accept or initiate payments to or from Silvergate amid fear of possible bankruptcy.

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