- Santiment, a crypto analytics firm, has issued a warning on Ethereum, claiming that its largest smart contract altcoin is at high risk of panic selling.
On-chain measurements, according to data from crypto analytics firm Santiment, Ethereum (ETH) indicates that he may be at risk of pank-selling.
In his post, Santiment stated that ETH is “rapidly” moving to exchanges and that ETH on exchanges has risen to its highest rate in the last six months. states.
A 2021 study published by Santiment also shows that large increases in foreign exchange inflows tend to lead to an average of 5 percent price drops for cryptoassets.
Ethereum is trading at $1142 at the time of writing. The second-ranked crypto-asset by market cap has increased by around 4% in the last 24 hours.
Bitcoin investors should be wary of whales
Santiment also on Monday Bitcoin (BTC) He also said he was witnessing a “huge rise” in the stock markets. The company explained what this means:
“Trader optimism is often associated with the holidays, which means more caution needs to be exercised against whales punishing over-tempered bidders.”
The top-ranked crypto asset by market cap is trading at $20,278 at the time of writing, an increase of over 2% it has experienced in the last 24 hours.
Santiment also states that the average Bitcoin trader’s 365-day return is -45%.
Furthermore, the analytics firm claims that spikes in BTC whale transactions occur largely at small price spikes, which keeps the values of the top crypto asset stagnant.
“The vast majority of the biggest spikes in Bitcoin whale transactions over the past week have occurred after small BTC price spikes of $100 to $200. Prices fell after each of these temporary increases in transactions over $100,000 or $1 million.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.