Key Points
- Ethereum’s supply on exchanges has increased recently, indicating a possible selling trend among investors.
- Despite a bearish market turn, whale accumulation of Ethereum continues to rise.
Ethereum (ETH) has seen a significant outflow from exchanges over the past week, coinciding with a period of bullish price action.
However, the market has turned bearish in the last 24 hours, raising questions about the impact this may have on Ethereum’s outflow.
Ethereum’s Market Position
Ethereum’s price has remained above the $3k mark, with a rally of over 6% in the past seven days. During this time, investors have been accumulating Ethereum, suggesting they anticipate further price increases.
Crypto analyst Titan of Crypto highlighted this trend, noting that over 260,000 ETH (equivalent to more than $781 million) has left exchanges in the past week.
Additionally, Justin Sun has reportedly been accumulating Ethereum. According to Lookonchain, a wallet potentially belonging to Sun withdrew 15,389 ETH (worth $49.78 million) from Binance.
However, the market sentiment has shifted in the past 24 hours, with a general drop in cryptocurrency prices. Ethereum was down by over 2%, trading at $3,165.53 with a market capitalization of over $386 billion.
Impact on Buying Pressure
Following the price drop, an analysis of CryptoQuant’s data revealed a high net deposit of Ethereum on exchanges, suggesting that investors have started to sell Ethereum. The token’s exchange outflow has decreased in recent days, and its supply-on-exchange graph has risen, further supporting the selling trend.
Interestingly, this price decline has not affected whale accumulation. Ethereum’s supply held by top addresses continued to increase last week.
An analysis of Ethereum’s derivatives metrics and technical indicators suggests that the rise in selling pressure could further impact its price. The token’s Funding Rate increased, which generally suggests a potential price drop.
Technical indicators also point towards a bearish trend. Both Ethereum’s Chaikin Money Flow (CMF) and Money Flow Index (MFI) have started to decline, indicating a potential continued price drop in the coming days.
