Ethereum exchange withdrawal transactions are surging.
This data should not be interpreted simply as a bearish signal but rather as an indication that "volatility may increase." The key takeaway is that this data has emerged from a market-overheat perspective.
Ethereum transaction increases are clearly highly correlated with altcoins.
Interestingly, the surge in transactions tends to occur after Bitcoin dominance has significantly declined (see image 2).
This pattern suggests a higher likelihood of a market pullback.
After a surge in attention, someone inevitably takes profits.
Written by Mignolet
