In the past few days, Ethereum (ETH) has seen a significant increase in supply on exchanges, raising concerns about potential selling pressure and price drops. The leading altcoin’s availability for sale has grown as exchange wallets accumulate more ETH reserves, causing alarm among investors who fear a price decline.
As exchange platforms witness an influx of Ethereum tokens, there is a possibility that the altcoin could face selling pressure, potentially triggering a price pullback. Currently, ETH is trading above $2,200 on Binance, but the increased supply on exchanges necessitates careful monitoring. Access NEWSLINKER to get the latest technology news.
On-chain data from Santiment reveals a notable increase in the percentage of Ethereum’s total supply on exchanges, rising from 8.07% to 8.16%. This increase, particularly over the last three months, highlights a trend that could signal growing downward pressure on ETH.
Additionally, data from IntoTheBlock indicates a significant 62% rise in Ethereum inflows to exchanges over the past week. This surge in token movement points to increased activity and potential impact on Ethereum’s market dynamics.
Analysis of Santiment’s Ethereum Network Profit/Loss graph shows substantial profit-taking by ETH investors between October 31 and December 23. Such trends in profit realization could contribute to a potential pullback in the price of the altcoin ETH.
Looking ahead, Ethereum developers have set provisional dates for the Cancun/Deneb update on public Ethereum test networks, with planned forks on January 17 for Goerli, January 31 for Sepolia, and February 7 for Holesky. These updates, subject to developers’ assessments, mark significant milestones in Ethereum’s development trajectory. Despite Ethereum’s current stable position above $2,200, the increase in exchange supply is raising concerns.
Investors are advised to closely monitor potential price movements, especially in light of the planned network updates and evolving dynamics in Ethereum’s on-chain metrics.