- Ethereum exchange reserves soared by over 100,000 ETH, indicating potential selling pressure amid rising prices.
- Despite increased reserves, Ethereum’s price ascended to $2,400, suggesting strong buyer demand offsetting the selling inclination.
In the last 24 hours, Ethereum (ETH) exchange reserves have seen a substantial increase of over 100,000 ETH, sparking discussions among investors and traders about the potential market impact.
This recent spike in reserves coincides with Ethereum’s price ascent to over $2,400, marking a trading activity within the cryptocurrency space.
The sudden influx of ETH to exchange platforms typically indicates a readiness among holders to sell, potentially taking advantage of the recent price rise.
Data from CryptoQuant highlights this movement, noting a jump in reserves from 18.6 million ETH to approximately 18.755 million ETH in just one day—the largest increase observed in nearly a month.
This strategic positioning by traders suggests a preparatory step for potential liquidation, influenced perhaps by the recent favorable price trends.
Such movements often signal a bearish outlook as traders anticipate a peak followed by a possible decline, prompting them to convert their holdings into cash or other assets.
Despite this, the session closed on a positive note for Ethereum. Analysis of the daily price movement shows that ETH started at roughly $2,361 and climbed to about $2,440 by the close, registering a gain of over 3%.
This positive closure indicates strong buying pressure that effectively absorbed the added supply from the increased exchange reserves.
Further scrutiny reveals a nuanced scenario where the netflow data—representing the balance of ETH moving in and out of exchanges—showed a positive figure of over 12,000 ETH.
In this context, ‘positive’ suggests that inflows to exchanges surpassed outflows, a common indicator of heightened selling activity. However, the fact that Ethereum’s price still ended higher after such a session suggests robust demand was enough to counterbalance the selling pressure.
On the technical front, the RSI hovered near the neutral zone, not fully committing to a bearish or bullish trend. This indicator, combined with Ethereum’s capability to maintain levels near $2,400, points to a cautiously optimistic outlook for the cryptocurrency in the short term, provided the buyer interest remains steady.
