Ethereum

Spike

Verge

<ul> 
 <li aria-level="1">Ethereum exchange reserves soared by over 100,000 ETH, indicating potential selling pressure amid rising prices.</li> 
 <li aria-level="1">Despite increased reserves, Ethereum’s price ascended to $2,400, suggesting strong buyer demand offsetting the selling inclination.</li> 
</ul> 
In the last 24 hours, Ethereum (ETH) exchange reserves have seen a substantial increase of over 100,000 ETH, sparking discussions among investors and traders about the potential market impact. 
This recent spike in reserves coincides with Ethereum’s price ascent to over $2,400, marking a trading activity within the cryptocurrency space. 
The sudden influx of ETH to exchange platforms typically indicates a readiness among holders to sell, potentially taking advantage of the recent price rise. 
Data from <a href="https://cryptoquant.com/asset/eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line">CryptoQuant highlights</a> this movement, noting a jump in reserves from 18.6 million ETH to approximately 18.755 million ETH in just one day—the largest increase observed in nearly a month. 
<figure id="attachment_93425" aria-describedby="caption-attachment-93425" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="wp-image-93425 size-full" title="is-ethereum-eth-on-the-verge-of-a-major-sell-off-what-the-reserve-spike-tells-us" src="https://www.ethnews.com/wp-content/uploads/2024/09/Ethereum-Exchange-Reserve-All-Exchanges.png" alt="Ethereum Exchange Reserve - All Exchanges" width="2560" height="1440">
 <figcaption id="caption-attachment-93425" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure> 
This strategic positioning by traders suggests a preparatory step for potential liquidation, influenced perhaps by the recent favorable price trends. 
Such movements often signal a <a href="https://www.ethnews.com/shocking-end-to-ethereum-sell-offs-buterin-promises-no-more-sales/">bearish outlook</a> as traders anticipate a peak followed by a possible decline, prompting them to convert their holdings into cash or other assets. 
Despite this, the session closed on a positive note for Ethereum. Analysis of the daily price movement shows that ETH started at roughly $2,361 and climbed to about $2,440 by the close, registering a gain of over 3%. 
<figure id="attachment_93433" aria-describedby="caption-attachment-93433" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-93433" src="https://www.ethnews.com/wp-content/uploads/2024/09/Ethereum-Exchange-Netflow-Total-All-Exchanges-1-2048x1152-1.png" alt="Ethereum-Exchange-Netflow-Total-All-Exchanges-1-2048x1152" width="2048" height="1152">
 <figcaption id="caption-attachment-93433" class="wp-caption-text">
 Source: CryptoQuant
 </figcaption>
</figure> 
This positive closure indicates strong buying pressure that effectively absorbed the added supply from the increased exchange reserves. 
Further scrutiny reveals a nuanced scenario where the netflow data—representing the balance of ETH moving in and out of exchanges—showed a positive figure of over 12,000 ETH. 
In this context, ‘positive’ suggests that inflows to exchanges surpassed outflows, a common indicator of heightened selling activity. However, the fact that Ethereum’s price still ended higher after such a session suggests robust demand was enough to counterbalance the <a href="https://www.ethnews.com/ethereums-10-million-outflow-is-it-time-to-panic/">selling pressure</a>. 
<figure id="attachment_93429" aria-describedby="caption-attachment-93429" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-93429" src="https://www.ethnews.com/wp-content/uploads/2024/09/ETHUSD_2024-09-14_07-56-45-e1726329861424.png" alt="ETHUSD_2024-09-14_07-56-45" width="1491" height="705">
 <figcaption id="caption-attachment-93429" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure> 
On the technical front, the RSI hovered near the neutral zone, not fully committing to a <a href="https://www.ethnews.com/ethereum-whales-retreat-tactical-rebalance-or-bear-market-precursor/">bearish or bullish trend</a>. This indicator, combined with Ethereum’s capability to maintain levels near $2,400, points to a cautiously optimistic outlook for the cryptocurrency in the short term, provided the buyer interest remains steady. 
The post <a href="https://www.ethnews.com/is-ethereum-eth-on-the-verge-of-a-major-sell-off-what-the-reserve-spike-tells-us/">Is Ethereum ETH on the Verge of a Major Sell-Off? What the Reserve Spike Tells Us!</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Is Ethereum ETH on the Verge of a Major Sell-Off? What the Reserve Spike Tells Us!

ETHNews

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