ETH Exchange Reserve Soars as Whales and Institutions Send $260M Worth of ETH to Exchanges, Signaling a Potential Sell-Off

ETH appears bearish as it has broken the crucial support level of $2400 and is trading below the 200 Exponential Moving Average (EMA) on a daily time frame.

A large sum of Ethereum (ETH) has been flowing into cryptocurrency exchanges, which could be a sign of an upcoming sell-off.

According to a crypto expert's post on X (Previously Twitter) on October 4, 2024, nearly $260 million worth of ETH was deposited into the exchanges over the past 24 hours. This recent price crash might just be getting started, as whales and institutions have been observed transferring a substantial amount of ETH to exchanges.

108,000 $ETH were sent to crypto exchanges in the past 24 hours, totaling roughly $259.2 million!

Whenever whales or institutions transfer their assets from wallets to exchanges, it is usually a potential sell-off signal. The possible reason behind this significant ETH transfer could be the ongoing tension between Iran and Israel.

This large-scale transfer of ETH from wallets to exchanges indicates bearish market sentiment and a potential price decline in the upcoming days.

Meanwhile, ETH's current price is around $2,375, showing a 1.3% increase in price over the last 24 hours. During this period, participation from investors and traders seems to be low, as its trading volume has dropped by 25%.

According to a technical expert's analysis, ETH appears bearish as it has breached the crucial support level of $2,400 and is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. Considering ETH's price momentum, it seems the asset is currently retesting the breakdown level.

If ETH closes its daily candle below the $2,330 level, there is a high probability that the asset will face a significant decline, possibly reaching the $2,200 level or lower in the coming days.

However, ETH's on-chain metrics indicate contrasting sentiments. According to the on-chain analytics firm Coinglass, ETH's long/short ratio currently stands at 1.0263, suggesting bullish market sentiment among traders. A ratio value above 1 is usually considered a sign of bullishness.

Moreover, the futures open interest for ETH has decreased by 2.5% over the last 24 hours, indicating the liquidation of positions and suggesting that traders are hesitant to build new ones.

Combining all these on-chain metrics, technical analysis, and exchange reserves, it appears that Ethereum is showing weakness, with bears currently having the upper hand in the asset's price movement.

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