Despite a strong start to the month, Ethereum’s price has struggled to hold its ground. Concerns over regulation have added to the bearish sentiment surrounding the cryptocurrency.
Ethereum Flowing to Exchanges
Data from CryptoQuant reveals that over $913 million worth of Ethereum has been transferred to centralized exchanges in March. This is the highest monthly volume since June 2022. The influx of Ethereum to exchanges suggests that investors may be losing confidence in the cryptocurrency’s long-term prospects.
Exodus of Ethereum
Crypto analyst Ali Martinez reports that nearly 420,000 Ethereum tokens (worth $1.47 billion) have been transferred to exchanges in the past three weeks.
Bearish Signal
The movement of large amounts of cryptocurrency to exchanges is often seen as a bearish sign. It can indicate that investors are preparing to sell their assets, which can put downward pressure on the price.
Regulatory Concerns
The recent regulatory scrutiny surrounding Ethereum has further fueled the negative sentiment. The United States Securities and Exchange Commission (SEC) is reportedly considering classifying ETH as a security.
Ethereum Price
As of this writing, Ethereum is trading at $3,343, down 4% in the past 24 hours and 11% in the past week.
