The post This is why Ethereum (ETH) May Witness a Further Decline appeared on BitcoinEthereumNews.com.

Since August 31, the amount of Ethereum (ETH) sent to exchanges has been gradually increasing. This surge coincides with ETH facing strong resistance at the $2,750 price level. As of now, ETH is trading at $2,466. If selling pressure continues to mount, ETH risks further decline. Ethereum Holders Send Coins To Exchanges As ETH faces strong resistance at $2,750, holders are increasingly sending their coins to exchanges, as shown by the rising exchange reserves. According to CryptoQuant, 19 million ETH, valued at $47 billion, are now held on exchange wallets — a 1.01% increase over the past week, the highest since August 22.  Ethereum Exchange Reserve. Source: CryptoQuant An asset’s exchange reserve tracks the total number of its coins or tokens held on cryptocurrency exchanges. A spike in this metric often suggests that holders are moving their assets to exchanges with the intent to sell. This results in a general uptick in selling pressure, leading to a price drop if the selling outweighs buying interest. The decline in ETH’s large holders’ netflow confirms that its whales have also adopted a bearish approach. Since the coin’s price fell below $3000 at the beginning of August, they have gradually reduced their exposure. IntoTheBlock’s data shows that ETH’s large holders’ netflow has declined by 17% over the past 30 days and by 36% in the past week. Read more: Ethereum (ETH) Price Prediction 2024/2025/2030 Ethereum Large Holders Netflow. Source: IntoTheBlock This metric measures the difference between the coins that large investors buy and the amount they sell over a specific period. When it falls, it signals a drop in whale holdings. It is a bearish signal, suggesting that the key holders are selling their coins. This often prompts retail investors to follow suit, exacerbating an asset’s price decline. ETH Price Prediction: Coin Looks To…

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Filed under: News - @ September 2, 2024 5:19 pm