The value of Ethereum (ETH) sent into exchanges has surpassed $1 billion just two days after the altcoin’s price climbed to $2,600. This sudden influx of ETH onto exchanges often signals a potential shift in market sentiment, as traders may be preparing to cash out on recent gains.
With Ethereum’s price swinging sideways, the question now is whether this inflow will lead to increased selling pressure for one of the market’s top assets.
Ethereum Holders Book Quick Gains
On October 13, Glassnode data revealed that 122,164 ETH were held on exchanges. However, as of this writing, that number has surged to 390,432 ETH. At the current price of ETH, this represents a value of over $1 billion.
Exchange inflow shows the number of coins leaving external wallets and going into centralized platforms. The significant increase in ETH on exchanges could indicate rising selling pressure. Notably, more coins being transferred to exchanges often suggests that holders may be preparing to liquidate their assets.
If sustained, this could have bearish implications for the cryptocurrency’s short-term price movement. Moreover, this development is also another reason ETH’s price might struggle to reach $3,000.
Read more: Ethereum ETF Explained: What It Is and How It Works
A further on-chain assessment suggests that crypto whales have contributed to Ethereum’s recent price decline. According to IntoTheBlock, the large holders’ netflow to exchange ratio has increased over the past seven days.
This ratio offers insight into whale activity. When it decreases, it indicates that whales are withdraw
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Author: Victor Olanrewaju
