Unfortunately for Ethereum Hold, On-Chain Data Shows the Asset Still Under Pressure
After Independence Day in the US on July 4th, traders push the second biggest price cryptocurrency The market reached a local high of $1,120. Unfortunately, with the increase in the price of Ether, we are seeing disturbing on-chain data in the market.
As for Ethereum supply on exchanges, we are seeing an uptick in inflows on exchanges as traders are actively moving their funds back to the trading platform. Whenever exchange flows increase, the assets subsequently face selling pressure.
I #ethereumThe price has moderately risen to ~$1,120 on the US birthday. it said, $ETH The exchange continues to rebound bullish and is close to breaking its 2022 highs. The sell-off risk is high while the coins on the exchange wallet are moving. https://t.co/kJFZNCXV54 pic.twitter.com/JcmrHp80VK
— sentiment (@santimentfeed) 4 July 2022
The movement of funds towards exchanges is most likely linked to the fact that market participants have been looking for ways to realize their wealth after the massive crash in June. The selling pressure on the market eased significantly as the price of Ethereum fell in the $800 range.
it can’t be that bad
The increasing influx on exchanges may not be linked to traders’ willingness to sell their holdings, as centralized exchanges often move some of their funds from cold to hot wallets to increase market liquidity and provide needed funds to market makers.
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The series of liquidations we saw back in June have also been linked to large inflows on exchanges, as decentralized platforms no longer hold as much ether as they used to. With the declining demand for collateralized loans, investors are moving back to more “traditional” investment and trading instruments.
At press time, Ethereum is trading at $1,158 and the market is under bear pressure as it is yet to find sufficient buy support and is currently trading under the 21-day EMA.
