21.4 C
Amsterdam
8 August 2022
PumpMoonshot
Image default
Ethereum

This Ethereum On-Chain Data Suggests That Coin Is on Verge of Another Sell-off

Following Independence Day in the U.S. on July 4th, traders have pushed the price of the second biggest cryptocurrency on the market to local highs, reaching $1,120. Unfortunately, with the price of Ether going back up, we are seeing disturbing on-chain data appearing on the market.

According to Ethereum’s supply on exchanges, we are seeing an intensification of inflows on exchanges as traders are actively pushing their funds back onto trading platforms. Whenever exchange inflows are on the rise, assets face selling pressure later on.

The movement of funds toward exchanges is most likely tied to the fact that market participants are looking for ways to realize their funds after the massive crash we saw in June. As Ethereum’s price dropped to the $800 range, the selling pressure on the market decreased significantly.

It might not be that bad

Rising inflows on exchanges might not be tied to the desire of traders to sell their holdings, as centralized exchanges often move some of their funds from cold to hot wallets to increase the liquidity on the market and provide market makers with needed funds.

News Source

Related posts

Ethereum Community Conference (ETH) wondering If There will be an Event in 2021?

PumpMoonshot

Ethereum Top Price Prediction: After the crash, it must hold onto the critical cushion before Constantinople – Confluence Detector

PumpMoonshot

Ethereum Weathers Market Correction, ETH/USD Can Reach $10,500

PumpMoonshot