Second biggest cryptocurrency on market is making serious moves
The sudden move of $600 million toward Coinbase has created a strong price spike on the second biggest cryptocurrency on the market. In the last 24 hours, Ether’s price reached the $1,250 threshold, which could become a foundation for a run toward $1,300.
As we mentioned previously, Ethereum has shown a lot of resilience during the FTX-fueled crash on the market and barely even touched the $1,000 support level, successfully bouncing immediately after.
Thanks to the successful absorption of FTX’s funds right after the appearance of the first insolvency rumors and the lack of reserves on the exchange, Ether avoided the selling pressure that assets like SOL and Serum had to face, and they lost significantly more value than Buterin’s coin.
A day after the insolvency turned from a rumor into a fact, Ethereum-based DeFi platforms saw a surge in inflows, showing that investors decided to temporarily move their funds to noncustodial solutions to avoid any further issues with centralized exchanges.
Additionally, the rise in network activity led to the increased burning rate, which potentially became fuel for a short-term reversal that dragged Ether away from a potential plunge to the 2022 low.
Thanks to a strong bounce, Ether might now pick up some retail buying volume and continue to move upward. However, the descending volume on the asset might be a negative signal for the market. With the lack of volume, Ether will most likely enter a rangebound similar to the trading channel present on the market between September and October.
At press time, Ether is trading at $1,260, with a 7% price increase in the last 12 hours. The sudden spike occurred after the $600 million transfer to Coinbase.