Ethereum (ETH) Traders Offload Their Coins Amid Rising Exchange Reserves
beincrypto.com 02 September 2024 17:00, UTC Since August 31, the amount of Ethereum (ETH) sent to exchanges has been gradually increasing. This surge coincides with ETH facing strong resistance at the $2,750 price level.
As of now, ETH is trading at $2,466. If selling pressure continues to mount, ETH risks further decline.
Ethereum Holders Send Coins To Exchanges
As ETH faces strong resistance at $2,750, holders are increasingly sending their coins to exchanges, as shown by the rising exchange reserves. According to CryptoQuant, 19 million ETH, valued at $47 billion, are now held on exchange wallets — a 1.01% increase over the past week, the highest since August 22.
An asset’s exchange reserve tracks the total number of its coins or tokens held on cryptocurrency exchanges. A spike in this metric often suggests that holders are moving their assets to exchanges with the intent to sell. This results in a general uptick in selling pressure, leading to a price drop if the selling outweighs buying interest.
The decline in ETH’s large holders’ netflow confirms that its whales have also adopted a bearish approach. Since the coin’s price fell below $3000 at the beginning of August, they have gradually reduced their exposure. IntoTheBlock’s data shows that ETH’s large holders’ netflow has declined by 17% over the past 30 days and by 36% in the past week.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
This metric measures the difference between the coins that large investors buy and the amount they sell over a specific period. When it falls, it signals a drop in whale holdings. It is a bearish signal, suggesting that the key holders are selling their coins. This often prompts retail investors to follow suit, exacerbating an asset’s price decline.
ETH Price Prediction: Coin Looks To Extend Losses
Over the past month, ETH’s value has dropped by 22%, with buying interest fading and signaling a continued downtrend. The one-day chart shows technical indicators supporting this bearish outlook. For instance, the Elder-Ray Index returns a negative value of -207.82.
This indicator measures the relationship between the strength of buyers and sellers in the market. When its value is below zero, bear power dominates the market.
Additionally, ETH’s On-Balance Volume (OBV) has been declining since July 31, reflecting increasing selling pressure. As of now, ETH’s OBV stands at 41.60 million.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
If this selling pressure continues to strengthen, ETH’s price could fall by another 14%, potentially dropping to $2,111. On the other hand, if the leading altcoin witnesses a resurgence in new demand, this may drive its price up toward $2,579.
