Ether (ETH) traded weak early Monday amid reports of large cryptocurrency transfers to Binance, the world's largest cryptocurrency exchange.
The native token of Ethereum's blockchain fell nearly 4% to $1,170, CoinDesk data shows.
A "whale" address moved 73,224 ETH, worth $85.7 million, to Binance during the Asian trading hours, according to an analysis by on-chain researcher Lookonchain.
Investors typically transfer coins to centralized exchanges when they intend to sell or use the coins as a margin in derivatives trading. Therefore, an uptick in exchange inflows often paves the way for heightened price volatility.
"Watch out for the selling pressure of ETH," Lookonchain tweeted, after noting the large inflow into Binance.
According to Lookonchain, the address that moved more than 73,000 ETH to Binance was the same one that pulled out 84,131 ETH from decentralized exchange Curve's staked ether (stETH)-ether liquidity pool last week.
The price of liquid-staking protocol Lido's staked-ether (stETH) token fell to 0.97 ETH after the large investor withdrew more than 84,000 ETH from the Curve pool. At press time, stETH traded at 0.982 relative to ether, according to Dune Analytics.
The whale who removed 84,131 $ETH ($101M) from Curve 3 days ago is transferring $ETH to #Binance.
He transferred a total of 73,224 $ETH ($85.7M) to #Binance, leaving 11,884 $ETH ($13.9M).
Watch out for selling pressure of $ETH!https://t.co/8KRdt8kopHhttps://t.co/voRXKZIhSF pic.twitter.com/7VYHFhlUQV
— Lookonchain (@lookonchain) November 28, 2022