A widely followed crypto analyst says that Ethereum’s (ETH) balance on crypto exchange platforms is spiking amid a possible sell-the-news event.
In a new thread, crypto trader Ali Martinez tells his 62,700 followers on the social media platform X that over the last two weeks, hundreds of thousands of ETH have been transferred to wallets linked to crypto exchanges.
[adinserter block="1"]“Looking at Ethereum’s balance on exchanges reveals a spike in the tokens available to sell. Over the last two weeks, over 242,000 ETH have moved to cryptocurrency exchange wallets. This indicates increased trading activity on exchanges that can contribute to price volatility.”
According to Martinez, the massive ETH transfers are happening as a key signal – the Tom DeMark (TD) Sequential Indicator – is flashing a sell signal on the leading smart contract platform’s daily chart, hinting at the possibility of a sell-the-news event.
“The increasing ETH deposits to cryptocurrency exchange wallets hint at the possibility of a sell-off or a spike in profit-taking. Meanwhile, the Tom DeMark (TD) Sequential indicator presents a sell signal on Ethereum’s daily chart.
The current green nine candlesticks on the daily chart suggests that a spike in selling pressure could see ETH retrace for one to four daily candlesticks or even start a new downward countdown phase before the uptrend resumes.”
The TD Sequential Indicator is generally used to predict potential trend reversals for assets based on their previous closings.
Martinez concludes by saying that Ethereum has a path toward the $5,000 price level if it prints a daily close above $4,170.
“The most important resistance barrier for Ethereum is between $3,940 and $4,054. Here, over 1.16 million addresses had previously purchased around 574,660 ETH.
If ETH overcomes this hurdle and prints a daily candlestick close above $4,170, the bearish outlook will be invalidated. This could result in a new upward countdown phase toward $5,000.”
Earlier this week, proposals to create ETH-based exchange-traded funds (ETFs) cleared a key regulatory hurdle, causing the Ethereum ecosystem to rise.
Ethereum is trading for $3,732 at time of writing, a 2.31% decrease during the last 24 hours.
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