• Galaxy Digital shifted 25,000 ETH worth over $40 million to Binance in just three days.
• Ethereum dropped from $1,677 to $1,623, raising concerns of institutional sell-off pressure.
• Bear flag pattern and RSI below 50 hint at possible drop toward $1,100 support level.

Michael Novogratz’s investment firm, Galaxy Digital, has transferred a total of 25,000 Ethereum (ETH) worth over $40 million to Binance in the last three days. This development has raised concerns among market participants regarding the potential impact of large institutional sell-offs on Ethereum’s price.

The first set of transactions took place on April 12, involving two deposits of 4,500 ETH and 8,000 ETH, valued at approximately $7.11 million and $12.63 million, respectively.  On April 14, the firm carried out similar transfers of 2,500 ETH worth $4.05 million, followed by another 10,000 ETH worth $16.32 million.

During the recent transfer, Ethereum saw a noticeable price decline, dropping from $1,677 on April 14 to $1,623 at the time of writing. The correlation between the asset transfers and the price dip has led analysts to suggest that large-scale transactions like these could have a direct influence on short-term market performance and trader behavior.

Alongside the Ethereum transfers, Galaxy Digital moved substantial amounts of stablecoins and altcoins. The firm transferred 5 million USDT (Tether) to Binance, along with 100,000 USDC and a smaller amount of Avalanche (AVAX) worth $1,000. 

Despite recent outflows, Arkham Intelligence data shows the firm still holds 199.795 ETH, worth about $328,470, and 18,150 AVAX, valued at $363,180. It also continues to hold 4.208 million DAI along with 3.757 million USDC, putting its total stablecoin stash at roughly $7.97 million.

These transfers have occurred against the backdrop of a recently settled legal issue involving Galaxy Digital. The company agreed to pay a $200 million settlement in relation to a market manipulation case centered on the LUNA cryptocurrency. The New York Attorney General accused Galaxy Digital of selling off LUNA holdings without proper disclosure, despite promoting the token in 2020.

According to the allegations, Galaxy Digital had secured LUNA at a discounted price and then heavily promoted the asset, which led to a surge in its market value. The firm reportedly profited significantly by selling its holdings during the price increase without informing investors about its actions.

Market analysts are also highlighting troubling signals in Ethereum’s price chart. Over the past three weeks, the asset has been forming a bear flag pattern—a technical indicator that often suggests a potential further decline. If the price closes below the lower boundary of this pattern at $1,600, it could initiate a deeper drop, with targets as low as $1,100. This would represent a 33% decline from the current price level.

The Relative Strength Index (RSI), a key indicator of market momentum, remains below 50, which typically suggests bearish conditions. With both legal and technical pressures mounting, investor sentiment around Ethereum and Galaxy Digital’s activities appears increasingly cautious.

Galaxy Digital’s recent movements reflect more than routine asset management. The scale and timing of these transactions, especially in light of the legal issues and prevailing market conditions, suggest that the firm may be strategically repositioning itself amid expectations of further volatility.

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