Ethereum Exchange Deposits Reach The Highest Since January, ETH Price Drop Soon?
Although the Ethereum (ETH) price is flirting at around the $3,900 level, some selling pressure might be seen in the near term. As per the on-chain data, the Ethereum exchange deposits have surged to the highest levels since January 2024.
Ethereum Exchange Inflows Surge
According to data from IntoTheBlock, the amount of Ether flowing into exchanges reached its highest level since January. On Saturday, net deposits to exchanges surged to 140,660 ETH, marking the largest net inflows in over four months.
High inflows to exchanges are typically indicative of selling behavior, suggesting that investors are either taking profits or reacting to fear, uncertainty, and doubt (FUD) in the market.
On the other hand, some long-term Ethereum investors have been seen taking profits amid the recent ETH price surge. According to on-chain data provider Lookonchain, a smart money investor recently sold 3,025 ETH for 11.8 million DAI at a price of $3,904 per ETH, securing a profit of approximately $1.11 million.
This investor, who accumulated 17,770 ETH between 2017 and 2020 at an average price of $182 per ETH, had previously sold their holdings at $3,503 on March 28, 2024, resulting in a significant profit of around $59 million.
ETH/BTC Chart to Still Turn Bullish
Although the Ethereum (ETH) price has made a move closer to $4,000, it still has to breach that level to confirm the bullish momentum.
Analyst Tuur Demeester suggests that the Ethereum market euphoria has not yet emerged. In a May 25 post on X, Demeester highlighted a crucial chart showing that the ETH/BTC pair “needs to breach 0.06 to turn bullish.”
At the time of publication, the ETH/BTC pair was trading at 0.056, with the 50-week simple moving average (SMA) providing immediate support. To increase the likelihood of flipping the long-term descending trendline (blue) into support, the price needs to hold this level. If successful, ETH/BTC is expected to rise and confront resistance at the 0.06 level, marked by the 200-week SMA.
The chart below indicates that breaching this level doesn’t guarantee a sustained bullish trend for the pair. It will still need to flip the 100-week SMA at 0.063 to confirm the breakout.
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