Ethereum’s balance on cryptocurrency exchange platforms is surging, indicating a potential sell-off event, according to a popular crypto analyst. Ali Martinez, a crypto trader with a significant following, reveals that over the past two weeks, hundreds of thousands of ETH have been transferred to wallets linked to crypto exchanges. This increased trading activity on exchanges can contribute to price volatility, Martinez explains.
The surge in ETH transfers coincides with a sell signal from the Tom DeMark (TD) Sequential Indicator on Ethereum’s daily chart. Martinez suggests that the growing deposits to exchange wallets hint at a possible sell-off or profit-taking spike. The TD Sequential Indicator, which analyzes previous closing prices, indicates a potential trend reversal.
Martinez concludes that if Ethereum closes above $4,170 on a daily basis, it could pave the way for a price level of $5,000. He identifies the resistance barrier between $3,940 and $4,054 as crucial, as over 1.16 million addresses have previously bought around 574,660 ETH at this level. Overcoming this hurdle and achieving a daily close above $4,170 would invalidate the bearish outlook and potentially trigger an upward countdown phase towards $5,000.
Earlier this week, proposals for ETH-based exchange-traded funds (ETFs) cleared an important regulatory hurdle, leading to a rise in the Ethereum ecosystem. Currently, Ethereum is trading at $3,732, representing a 2.31% decrease in the last 24 hours.
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