Experts blame OpenSea and NFT issuers for Ethereum price crash

  • OpenSea and NFT issuers have transferred 56,300 Ether to exchanges and in royalties over the past two weeks. 
  • The spike in inflow of Ethereum to exchanges like Coinbase has increased the selling pressure on the altcoin. 
  • Experts believe that the rise in selling pressure due to OpenSea and NFT transactions fueled the drop in Ethereum price. 
  • Analysts have predicted that Ethereum price could continue its downtrend, hitting $2,275.

Ethereum’s recent drop in price was fueled by increasing inflows of the altcoin to cryptocurrency exchanges. Experts have blamed direct transfers from NFT marketplace OpenSea for the fall in Ethereum’s price. 

Ethereum inflow to exchanges spikes, increases selling pressure

Over the past two weeks, the volume of Ethereum leaving OpenSea, a peer-to-peer NFT marketplace, increased consistently. 21,000 Ethereum was transferred directly from OpenSea’s wallet to Coinbase. 

As the sale of NFTs increases, there is an increase in royalties and direct transfers from OpenSea. The NFT marketplace’s meteoric rise could increase the Ethereum inflow to exchanges like Coinbase. 

An additional 35,300 Ethereum was distributed to NFT issuers as royalties from OpenSea. Colin Wu, a Chinese journalist and crypto proponent, believes that the spike in the inflow of Ethereum from OpenSea to Coinbase fueled the rise in selling pressure. 

Historically, an increase in selling pressure triggers a price drop in the altcoin. 

Analysts have noted that the net outflow for Ethereum was relatively high for 2021. Over the past month, the net inflow of Ethereum surged.

Ethereum Net Position Change – All exchanges

@IAmCryptoWolf, a pseudonymous cryptocurrency analyst, evaluated the Ethereum price trend and predicted that a bounce in the altcoin’s price at the $2,300 area could act as strong resistance. 

FXStreet analysts have predicted that Ethereum price could target $2,400, and the sell-off  deepen.