Key Points
- Ethereum’s exchange reserves continue to decrease despite large holders selling off their shares.
- Ethereum’s market remains bearish with the cryptocurrency trading below key price levels.
Despite facing resistance at key price levels in recent weeks, Ethereum has continued to see a decline in exchange reserves.
Ethereum Sell-offs
Recent data suggests that an Ethereum whale sold 6,900 ETH, worth around $17.87 million. This indicates a significant shift in the whale’s behavior, moving from an accumulation phase to a selling phase.
Despite this, the netflow metric for Ethereum does not show a clear dominance of inflows to exchanges, suggesting a balance between inflows and outflows.
Declining Ethereum Reserves
Despite the sell-offs, Ethereum’s exchange reserves continue to decline. This suggests that a significant amount of Ethereum is still being withdrawn from exchanges, which could be seen as a bullish sign as it implies a shrinking supply of ETH available for immediate trading.
At the time of writing, Ethereum was trading at approximately $2,512, following a nearly 1% decline. Analysis of its Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggests that Ethereum is currently in a bearish trend.
The RSI was below 40, indicating a strong bearish phase. The MACD’s signal lines were below zero, suggesting that the bears are still in control.
