Key Points
Ethereum’s exchange reserves continue to decrease despite large holders selling off their shares. Ethereum’s market remains bearish with the cryptocurrency trading below key price levels.
Despite facing resistance at key price levels in recent weeks, Ethereum has continued to see a decline in exchange reserves.
Ethereum Sell-offs
Recent data suggests that an Ethereum whale sold 6,900 ETH, worth around $17.87 million. This indicates a significant shift in the whale’s behavior, moving from an accumulation phase to a selling phase.
Despite this, the netflow metric for Ethereum does not show a clear dominance of inflows to exchanges, suggesting a balance between inflows and outflows.
Declining Ethereum Reserves
Despite the sell-offs, Ethereum’s exchange reserves continue to decline. This suggests that a significant amount of Ethereum is still being withdrawn from exchanges, which could be seen as a bullish sign as it implies a shrinking supply of ETH available for immediate trading.
At the time of writing, Ethereum was trading at approximately $2,512, following a nearly 1% decline. Analysis of its Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggests that Ethereum is currently in a bearish trend.
The RSI was below 40, indicating a strong bearish phase. The MACD’s signal lines were below zero, suggesting that the bears are still in control.