Ethereum (ETH) Exchange Reserve Soars
The recent price crash in Ethereum (ETH) seems to be just the beginning, as whales and institutions have sent a significant amount of ETH to exchanges. On October 4, 2024, a well-known crypto expert took to X (formerly Twitter) to share that nearly $260 million worth of ETH had been deposited to cryptocurrency exchanges within the past 24 hours.
Whenever whales or institutions transfer their assets from wallets to exchanges, it is often seen as a potential sell-off signal. The primary reason behind this large ETH transfer could potentially be the escalating tensions between Iran and Israel.
The significant movement of ETH from wallets to exchanges suggests a bearish market sentiment and hints at a potential price crash in the near future. However, Ethereum is currently trading around the $2,375 level, experiencing a price surge of over 1.3% in the last 24 hours. Despite this, investors and traders seem to be hesitant as trading volume has dropped by 25% during the same period.
Ethereum Technical Analysis and Upcoming Levels
Technical analysis indicates that ETH appears bearish as it has broken the crucial support level of $2,400 and is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. Based on the current price momentum, it appears that the asset is in the process of retesting the breakdown level.
If Ethereum closes its daily candle below the $2,330 level, there is a strong possibility that it could experience a significant decline, potentially reaching the $2,200 level or even lower in the days to come.
Bearish On-Chain Metrics
Despite the mixed sentiment in ETH’s on-chain metrics, there are some bullish signs. According to the on-chain analytics firm Coinglass, ETH’s long/short ratio currently stands at 1.0263, indicating a bullish market sentiment among traders. A ratio value above 1 is generally considered bullish.
Additionally, ETH’s future open interest has decreased by 2.5% over the last 24 hours, suggesting the liquidation of positions and indicating that traders are cautious about building new ones.
Taking into account all these on-chain metrics, technical analysis, and exchange reserves, it appears that Ethereum is currently weak, with bears dominating the asset. The market sentiment seems to be leaning towards a potential price crash in the coming days.