As an experienced analyst, I closely monitor the Ethereum market and pay close attention to on-chain data to make informed investment decisions. Based on recent trends, I believe that the surge in Ethereum exchange inflows could signal selling pressure in the near term. This behavior is typically indicative of investors taking profits or reacting to market uncertainty.
The Ethereum (ETH) price hovers around $3,900, but there could be an increase in sell orders imminently based on current market trends. According to on-chain statistics, Ethereum deposits into exchanges have peaked at their highest point since January 2024.
Ethereum Exchange Inflows Surge
Based on IntoTheBlock’s statistics, there was a significant increase in Ether being transferred to cryptocurrency exchanges on Saturday. This represented the greatest volume of net deposits in approximately four months.
Heavy volumes of money flowing into exchanges often signify selling activity from investors. This could be due to two main reasons: either they are realizing profits or responding to market anxiety, uncertainty, and fear (FUD).
As a researcher examining Ethereum’s market trends, I’ve noticed that some long-term investors have begun cashing out their profits during the recent surge in ETH prices. Based on data from Lookonchain, an influential on-chain data provider, a sophisticated investor has recently sold 3,025 ETH for an equivalent of 11.8 million DAI, translating to a sale price of roughly $3,904 per ETH. This transaction yielded a profit of approximately $1.11 million.
A investor amassed a total of 17,770 ETH from 2017 to 2020, purchasing each token at an average price of approximately $182. In March 2024, they sold these holdings for a remarkable price of $3,503 per ETH, generating a substantial profit of over $59 million.
ETH/BTC Chart to Still Turn Bullish
Despite the Ethereum (ETH) price inching nearer to $4,000, it needs to surpass this mark to definitively signal a bullish trend.
As a crypto investor, I’ve been following the insights of Analyst Tuur Demeester closely. In his May 25 post on X, he emphasized that the Ethereum market hasn’t quite reached the euphoric stage yet. He pointed to a key chart indicating that for Ethereum to turn bullish against Bitcoin, we need to see the ETH/BTC pair surpassing the 0.06 threshold.
At the point when this text was released, the ETH/BTC exchange rate stood at 0.056. The 50-week simple moving average served as a prompt backup for prices. For the long-term downward trendline (depicted in blue) to transform into support, it’s crucial that the price maintains this level. If accomplished, ETH/BTC is projected to ascend and encounter resistance at the 0.06 mark, which is represented by the 200-week SMA.
As a researcher studying market trends, I’ve noticed from the chart that surpassing this particular level may not automatically lead to a prolonged bullish phase for the pair. To validate the breakout, it is essential to observe the pair flipping the 100-week Simple Moving Average (SMA) at 0.063.
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2024-05-28 13:20