According to IntoTheBlock, over 150,000 ETH were deposited to exchanges in the past day, marking the highest single-day inflow since January, raising concerns about a potential Ethereum sell-off.
In its tweet, IntoTheBlock noted that such substantial inflows often indicate rising selling pressure, as users may be looking to capitalize on recent price movements — whether to secure profits or limit further losses.
Over 150.000 $ETH was deposited to exchanges yesterday, the highest since JanuarySuch substantial inflows often indicate rising selling pressure, as users may be looking to capitalize on recent price movements—whether to secure profits or limit further losses. pic.twitter.com/G6GoAsQwbR
— IntoTheBlock (@intotheblock) September 20, 2024
Cryptocurrencies gained as part of a wider market rise Thursday, a day after the Federal Reserve cut interest rates by half a percentage point, the first in more than four years; Ethereum rose more than 6%.
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According to CoinMarketCap data, the price of Ethereum was up 4.7% at $2,544 at the time of writing, continuing a surge that began before to the central bank's decision on Wednesday. If ETH closes higher today, it would have gained for the fourth day in a row since Sept. 17.
Currently, it seems that the Ethereum price is absorbing the current selling pressure, as ETH holders show diverging strategies.
According to CryptoQuant, ETH addresses holding 100,000 ETH balances, along with accumulating retail addresses, appear to be inactive. Meanwhile, addresses with balances between 10,000 ETH and 100,000 ETH are buying, but at a slow pace. However, addresses holding 100 ETH to 1,000 ETH continue to sell steadily.
What's next for ETH price?
On the upside, if the bulls can keep the ETH price above the 50-day SMA at $2,540, it could indicate that the bears are losing their grip. Ethereum rose to a high of $2,573 during today's trading session.
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The focus will be on the ETH price's activity to see if it can persist above this level and, thus, surge to $2,850. Buyers must pass this level to indicate a probable trend change.
On the downside, $2,250 is a significant support level to watch for. If this support fails, the selling might accelerate, with Ethereum falling below $2,111 and finally to $2,000.
