Even Ethereum, the second-largest crypto network in the world, could not handle the market fall that happened as last week was ending. The coin was anticipated to reach new heights provided it withheld a couple of resistances in the $3,200 -$3,900 range. But unfortunately, the currency experienced a deep fall, pushing it down to the $2,400 range. According to experts’ views, Ethereum has been experiencing a significant surge in its inflow, and it supposedly triggered the fall of the DeFi giant.
OpenSea, an NFT market, is dubbed responsible for the sudden surge in the Ethereum inflow. Allegedly, the NFT platform haas been transferring Ethereum tokens in Bulks to crypto exchanges and NFT makers. OpenSea paid Ether for royalties as the platform was witnessing some significant growth in the business. The platform’s transfers have been increasing for a few weeks now and last week witnessed a direct transfer of 21,000 Ethers straight to Coinbase crypto exchange from OpenSea’s wallet.
The company is reportedly growing, and the expansion of the name costs dearly. In addition to the abovementioned transaction, the platform also transferred nearly 35,000 Ether tokens to NFT issuers. These bulk transactions inadvertently caused a ripple effect which significantly increased the inflow rate of Ethereum tokens. In the crypto market, increased inflow of tokens is synonymous with selling pressure which resulted in the steep fall in the coin’s price.
In 2021, Ethereum managed to keep the outflow rate of coins at a beneficial point, and it helped the coin to put up a great performance. But it could not continue the same history in 2022, thanks to the transactions from OpenSea. The net inflow of the coin soared close to the net outflow of Ethereum within weeks since stepping into the new year.
Ethereum is expected to get a solid stance around $2,400. The coin had to settle for this value as the anticipated resistance at $3,000 did not go as expected, though it was considered key for the price increment of Ethereum. As the price increases, the resistance is likely to come strong at $2,300. However, the support is also set at the $2,200- $2,300 range and may help the coin to reinstate a position in that range.
But the continued ripple effect from the last fall could bring Ethereum as low as $2,275 before racing up towards $2,400. However, the market crash affected all the counts, not just Ethereum. Even the mammoth Bitcoin was dragged to the bottom last week. So, we cannot come to any decision about entering the long term with this separate incident as the overall predictions still look positive enough for long-term profits. Read this ETH price prediction from CryptoNewsZ.com for more insights.