Ethereum (ETH) Price Crash: Whales and Institutions Send Significant Amount to Exchanges
The recent price crash in the cryptocurrency market seems to be just the beginning, as whales and institutions have sent a significant amount of Ethereum (ETH) to exchanges. On October 4, 2024, a prominent crypto expert revealed that nearly $260 million worth of ETH had been deposited to cryptocurrency exchanges in the past 24 hours.
This surge in ETH exchange reserves is seen as a potential sell-off signal, as whales and institutions moving their assets to exchanges typically indicate bearish market sentiment. The reason behind this significant ETH transfer is believed to be the ongoing tension between Iran and Israel.
Despite the bearish indicators, ETH is currently trading near the $2,375 level and has experienced a slight price surge of over 1.3% in the past 24 hours. However, trading volume has dropped by 25%, suggesting that investors and traders are hesitant to participate.
Technical analysis shows that ETH has broken a crucial support level of $2,400 and is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. If ETH closes below the $2,330 level, there is a strong possibility of a significant decline, potentially reaching the $2,200 level or lower in the coming days.
On-chain metrics for ETH present a mixed sentiment, with the long/short ratio standing at 1.0263, indicating bullish market sentiment among traders. However, future open interest has declined by 2.5% in the last 24 hours, suggesting that traders are hesitant to build new positions.
Overall, the combination of on-chain metrics, technical analysis, and exchange reserves paints a picture of weakness for Ethereum, with bears currently dominating the asset. Traders and investors are advised to proceed with caution in the volatile market conditions.
