Despite starting the month of September on a positive note, recent data shows that Ethereum reserves on crypto exchanges have witnessed a significant rise, which has raised questions about a possible market implication.
The surge of Ethereum on exchanges is seen as a change in investors’ mood, as some traders may be hoping to profit from price swings or preparing for further volatility. This rise comes in light of mounting concerns about a Death Cross formation.
Ethereum Flowing Into Exchanges On A Huge Scale
Market expert and enthusiast, Shayan, pointed out the development in his recent research on the leading on-chain analytics provider platform, CryptoQuant. The increase implies that more Ethereum owners are transferring their holdings to exchanges, probably in anticipation of selling, given the current state of the market.
Shayan underlined the development while aiming to address a pressing question of whether ETH’s market is in an accumulation phase or distribution phase, due to the notable decline in the crypto asset’s price over the past few weeks.” The Ethereum Exchange Reserve metric, which tracks the amount of ETH held in exchange wallets, provides valuable insights into this question,” he stated.
According to the expert, the metric showed an upward trend from June to August, indicating a distribution phase that added to the current bearish trend of ETH. He noted that the exchange reserve metric is once again climbing strongly after the recent death cross, in which the 100-day moving average crossed below the 200-day moving average, implying that another distribution phase may be on the horizon.
While the Ethereum reserves on exchanges continue to grow, Shayan highlighted that there is a greater chance that demand will diminish. This development could lead to even more price declines in the coming days.
However, the crypto expert believes it is also critical to take into account the condition of the futures market, as this is a significant factor in identifying price movements and should be thoroughly examined before making any firm judgments.
ETH Attracting Positive Sentiment
Today Ethereum, the world’s second-largest cryptocurrency by market capitalization is demonstrating a positive price movement alongside other notable cryptocurrency assets like Bitcoin and Solana. ETH’s recent movement appears to be triggered by a general optimism in the market, which appears to have experienced a slight rebound.
Currently, ETH has rebounded to the $2,519 level after dropping as low as $2,400 in the previous day. It has attracted an over 3% price increase in the past day while showing signs of attracting further gains. Investors appear to be gradually returning to the market as the crypto asset’s market cap has risen by 3.33% in the last 24 hours, valued at about $303 billion.
Featured image from iStock, chart from Tradingview.com
