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According to data from IntoTheBlock, a notable shift in<a href="https://coingape.com/ethereum-price-traders-dump-109-mln-eth-amid-price-correction-slip-below-3k-looms/" rel="noopener noreferrer nofollow"> Ethereum (ETH)</a> market dynamics is attributed to a wave of fear, uncertainty, and doubt (FUD). Analysts pinpoint these sentiments as pivotal in Ethereum’s recent performance discrepancies. As per insights from the blockchain data tracker IntoTheBlock, a surge in Ethereum moving to centralized exchanges (CEXes) marks a significant reaction from the investor community.
<h2 id="strong-investors-react-to-regulatory-uncertainty-strong">Investors React to Regulatory Uncertainty</h2>
The IntoTheBlock On-Chain Insights newsletter reveals a mixed bag of trends for Ethereum over the past week. Amid fading meme coin enthusiasm, Ethereum’s transaction fees have recorded a 41% decline. Yet, a more striking development is the record $720 million worth of ETH moving to centralized exchanges. This transfer marks the largest weekly net inflow since September 2022, suggesting that the investor is cautious amidst growing regulatory scrutiny in the cryptocurrency sector, especially the second-largest crypto by market capitalization.
Recently, reports have emerged proposing an investigation into the<a href="https://coingape.com/breaking-ethereum-foundation-under-investigation-by-a-state-authority/" rel="noopener noreferrer nofollow"> Ethereum Foundation</a> by the Securities and Exchange Commission (SEC), amplifying concerns over Ethereum’s classification as a security in the United States. Such a designation could significantly impact the future regulatory landscape for Ethereum, including the prospects for the proposed spot Ethereum ETF approvals. Criticisms from U.S. congress members and Coinbase CLO<a href="https://coingape.com/coinbase-clo-grewal-argues-against-sec-overreach-calls-for-congress-oversight/" rel="noopener noreferrer nofollow"> Paul Grewal</a> highlight a broader discontent with the SEC’s approach to digital currency regulation.
<h2 id="strong-ethereum-performance-and-holder-sentiment-strong">Ethereum Performance and Holder Sentiment</h2>
Despite the struggling regulatory environment, Ethereum’s price action tells a story of resilience among long-term holders. Data indicates that the volume of Ethereum held for over a year continues to reach new peaks, undeterred by the prevailing FUD. This trend suggests a strong holder base confidence, even as Ethereum’s performance trails behind Bitcoin (BTC) and, on a risk-adjusted basis, the <a href="https://coingape.com/goldman-sachs-raises-sp-500-target-to-5200-will-bitcoin-btc-follow/" rel="noopener noreferrer nofollow">S&amp;P 500 index</a>. The ETH/BTC ratio hovers just above 0.05, approaching its lowest level since June 2022. In contrast, Bitcoin has surpassed its 2021 high, whereas ETH’s growth remains 32% below its all-time high.
As of the time of writing, <a rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/ethereum/">ETH was trading</a> in a bullish sentiment where the price has recorded a price surge of over 3% and is exchanging hands at the rate of $3,424. The trading volume over the last 24 hours has decreased by 23.62%, indicating that bears might take over the Ether market in the coming hours. When compared to the currency price, ETH has decreased by 30.09% from its all-time high (ATH) of $4,891.70, which was established on Nov. 16, 2021.
Read Also: <a href="https://coingape.com/kraken-uk-chief-endorses-bitcoin-etfs-for-british-investors/" rel="noopener noreferrer nofollow">Kraken UK Chief Endorses Bitcoin ETFs for British Investors</a>
The post <a href="https://coingape.com/ethereum-fud-triggers-record-720m-inflow-to-cexes/" rel="noopener noreferrer nofollow">Ethereum FUD Triggers Record $720M Inflow to CEXes</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ethereum FUD Triggers Record $720M Inflow to CEXes

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