With Ethereum's price swinging sideways, the question now is whether this inflow will lead to increased selling pressure for one of the market's top assets.
Ethereum Holders Book Quick Gains
On October 13, Glassnode data revealed that 122,164 ETH were held on exchanges. However, as of this writing, that number has surged to 390,432 ETH. At the current price of ETH, this represents a value of over $1 billion.
Exchange inflow shows the number of coins leaving external wallets and going into centralized platforms. The significant increase in ETH on exchanges could indicate rising selling pressure. Notably, more coins being transferred to exchanges often suggests that holders may be preparing to liquidate their assets.
If sustained, this could have bearish implications for the cryptocurrency's short-term price movement. Moreover, this development is also another reason ETH's price might struggle to reach $3,000.
A further on-chain assessment suggests that crypto whales have contributed to Ethereum's recent price decline. According to IntoTheBlock, the large holders' netflow to exchange ratio has increased over the past seven days.
This ratio offers insight into whale activity. When it decreases, it indicates that whales are withdrawing assets from exchanges, typically signaling a bullish trend as they may be holding long-term.
Conversely, the recent increase in the ratio suggests that these large holders are sending their Ethereum to exchanges, potentially for sale. This increase in exchange inflows from whales is often seen as a bearish sign, as it can create downward pressure on the cryptocurrency's price.
ETH Price Prediction: $2,440 Pullback Looms
On the daily chart, the Chaikin Money Flow (CMF) has fallen below the zero signal line. The CMF is a technical oscillator that measures accumulation and distribution in the market. When it increases, accumulation dominates, suggesting that the price can increase.
A decrease, on the other hand, indicates a rising level of distribution. For ETH, it is the latter, as the indicator suggests that the cryptocurrency could drop below $2,500.
Should this be the case, Ethereum's price may decline to $2,440. However, if bulls begin to buy ETH in large volumes again, the cryptocurrency's value could climb toward $3,018.
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Disclaimer
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