Key Points
- Ethereum’s exchange reserves saw a significant increase, indicating potential selling intent among holders.
- The price of Ethereum rose to over $2,400, with buying interest balancing out the increase in exchange reserves.
Ethereum’s most recent trading session saw a notable rise in the cryptocurrency’s exchange reserves.
This increase suggests that some Ethereum holders may be looking to sell their holdings.
Ethereum Reserves Spike
CryptoQuant data revealed a substantial increase in Ethereum exchange reserves over the past 24 hours.
On September 13, Ethereum reserves were approximately 18.6 million. However, they have since risen to about 18.755 million.
This increase of over 100,000 Ethereum is the first of its kind in nearly a month.
The spike suggests that more traders have transferred their Ethereum to exchanges, potentially with the intention of selling.
The price trend may have influenced this move, with traders possibly looking to profit from recent gains.
This activity may have contributed to Ethereum’s price fluctuations in the short term.
Ethereum’s Price Trend
During the last trading session, Ethereum’s price saw a significant upward movement.
The cryptocurrency opened at around $2,361 and closed at approximately $2,440, marking a gain of over 3%.
This is the first time in over a week that Ethereum has reached the $2,400 price level.
The price increase likely led to the spike in exchange reserves as traders moved Ethereum to exchanges in hopes of making a profit.
The higher closing price suggests that there were more buyers than sellers, balancing the inflow of Ethereum to exchanges.
Despite this, the Relative Strength Index (RSI) remained near the neutral line, indicating a larger bearish trend.
At the time of writing, Ethereum was trading at around $2,420, suggesting a slight pullback following the upward movement.
However, Ethereum’s ability to stay near the $2,400 level could signal potential bullish momentum in the near term if buyers remain active.
Ethereum Netflows Remain Positive
CryptoQuant data showed positive Ethereum netflows of over 12,000 during the last trading session.
Positive netflows indicate that more Ethereum was sent to exchanges than withdrawn, suggesting increased selling.
However, despite the significant increase in exchange reserves, this figure might seem relatively low.
A closer examination of the data revealed that while Ethereum deposits increased, withdrawals were also high.
This suggests that buying and selling on exchanges were nearly balanced, with buyers withdrawing Ethereum as quickly as sellers were depositing it.
This balance between buyers and sellers helped Ethereum maintain its price levels, even amid market fluctuations.
The relative balance in netflows is a positive sign for Ethereum’s price stability in the short term.
