Ethereum
Ethereum Balance on Exchanges Rises Amid Possible News Selling Event, Crypto Analyst Says
A widely followed crypto analyst claims that Ethereum (ETH) balance on cryptocurrency exchanges increases amid possible sell-off event information.
In a new thread, crypto trader Ali Martinez tell his 62,700 followers on social media platform
“Examining Ethereum’s balance on exchanges reveals a spike in tokens available for sale. Over the past two weeks, over 242,000 ETH has been transferred to cryptocurrency exchange wallets. This indicates increased trading activity on exchanges which may contribute to price volatility.
Source: Ali Martinez/X
According to Martinez, the massive ETH transfers are happening as a key signal – the Tom DeMark Sequential Indicator (TD) – is turn signal a sell signal on the daily chart of the leading smart contract platform, hinting at the possibility of a news sell-off event.
“The increase in ETH deposits in cryptocurrency exchange wallets hints at the possibility of a sell-off or increased profit-taking. Meanwhile, the Tom DeMark Sequential Indicator (TD) is showing a sell signal on the Ethereum daily chart.
The current nine green candlesticks on the daily chart suggest that a spike in selling pressure could see ETH retrace one to four daily candlesticks or even begin a new countdown phase before the uptrend resumes.
Source: Ali Martinez/X
The TD Sequential Indicator is typically used to predict potential trend reversals of assets based on their previous closes.
Martinez concludes saying that Ethereum has a path to the $5,000 price level if it prints a daily close above $4,170.
“The most important resistance barrier for Ethereum lies between $3,940 and $4,054. Here, over 1.16 million addresses had already purchased around 574,660 ETH.
If ETH overcomes this hurdle and posts a daily close above $4,170, the bearish outlook will be invalidated. This could lead to a new countdown phase towards $5,000.
Source: Ali Martinez/X
Earlier this week, proposals to create ETH-based exchange-traded funds (ETFs) erased a key regulatory hurdle, sparking the rise of the Ethereum ecosystem.
Ethereum is trading at $3,732 at the time of writing, down 2.31% over the past 24 hours.
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