A significant portion of Ethereum tokens has entered the leading exchanges, hinting at a potential selloff.
Ethereum ETH $3 939 24h volatility: 0.3% Market cap: $474.49 B Vol. 24h: $12.51 B has recorded an impressive 55% rally over the past 60 days with consistent inflows into its US-based spot exchange-traded funds. The leading altcoin outperformed Bitcoin’s BTC $111 687 24h volatility: 0.6% Market cap: $2.23 T Vol. 24h: $23.81 B 28% price hike in the same time frame. However, Ethereum might need to cool down before continuing its upward momentum.
According to data provided by CoinGlass, leading crypto exchanges Binance, Coinbase, Bitfinex, OKX, and Gemini recorded a net inflow of nearly 65,000 ETH over the past 24 hours.
Binance and Bitfinex lead with an inflow of 24,234 ETH and 24,415 ETH, respectively. The strong inflows into centralized crypto exchanges could hint at a potential selloff due to the strong liquidity of these platforms. This could mean short-term holders and traders might be cashing out their profits as the broader crypto market wanders in uncertainty.
The global crypto market cap declined 0.3% to $3.28 trillion, according to data from CoinMarketCap.
The Bigger Picture
Despite the bearish data surfacing, there’s still light at the end of the tunnel. CMC data shows that only 3.3% of ETH holders are short-term traders — addresses holding the asset for less than a month.
CoinGlass data shows that over $160 million worth of ETH has entered the leading exchange, but considering its $300 billion market cap, it’s unlikely that Ethereum would see a massive price plunge.
According to CoinGlass, Ethereum saw $36 million in liquidations over the past day — $27 million longs and $9 million shorts. Long liquidations usually trigger short-term FUD (fear, uncertainty, and doubt) among investors. This potentially triggers a selloff and price correction.
ETH dropped 0.8% in 24 hours to $2,490. The leading altcoin briefly touched a local low of $2,480 earlier today.
On the bright side, spot ETH ETFs in the US recorded a net inflow of $837.5 million over the past three weeks. BlackRock’s ETHA fund’s inflows surpassed $4.8 billion, showing strong institutional interest in the Ethereum-based investment product.
Ethereum would need to break its local high of $2,545 and stay above the $2,450 support zone to sustain its bullish momentum.
Falling below $2,400 will likely delay its $3,000 target further due to the market-wide uncertainty.
next