- Ethereum exchange deposits have surged significantly, indicating potential selling pressure on ETH prices.
- Long-term holders have started cashing out, adding to the market’s volatility.
- Despite recent gains, the ETH/BTC breakout still awaits confirmation for a bullish trend.
Ethereum exchange deposits reach new highs, signaling potential price drops. Long-term holders cash out, and ETH/BTC breakout remains uncertain.
Ethereum Exchange Deposits Surge
Over the weekend, Ethereum (ETH) saw a significant increase in exchange deposits, reaching 140,660 ETH. This surge marks the highest level of net inflows since January 2024, suggesting that selling pressure may be on the horizon. The current ETH price hovers around $3,900, but with such high inflows, market analysts predict potential downward movement in the near term.
Long-term Holders Cash Out
According to on-chain data from Lookonchain, some long-term Ethereum investors have begun to take profits amidst the recent price surge. A notable smart money investor sold 3,025 ETH for 11.8 million DAI at a price of $3,904 per ETH, securing a profit of approximately $1.11 million. This investor had accumulated 17,770 ETH between 2017 and 2020 at an average price of $182 per ETH, previously selling at $3,503 in March 2024, resulting in a significant profit of around $59 million.
ETH/BTC Chart to Still Turn Bullish
Despite Ethereum’s price nearing the $4,000 mark, it still needs to breach this level to confirm a bullish momentum. Analyst Tuur Demeester highlighted that the ETH/BTC pair needs to breach 0.06 to turn bullish. As of now, the ETH/BTC pair is trading at 0.056, with the 50-week simple moving average (SMA) providing immediate support. To flip the long-term descending trendline into support, the price needs to hold this level and confront resistance at the 0.06 level, marked by the 200-week SMA.
Conclusion
The recent surge in Ethereum exchange deposits and the actions of long-term holders indicate a potential shift in market dynamics. While the ETH price has shown strength, the confirmation of a bullish trend remains uncertain. Investors should closely monitor the ETH/BTC pair and key resistance levels to gauge future market movements.
