IntoTheBlock, a blockchain analytics website, reports that exchanges received over 150,000 ETH transfers in the last 24 hours, marking the largest single-day influx since January.
Such big inflows historically indicate rising selling pressure, implying that investors might be trying to profit on recent gains or minimize future losses.
Driven by the U.S. Federal Reserve’s decision to drop interest rates by half a percentage point, the first decrease in over four years, this explosion in deposits follows a wider market increase on Thursday. This market confidence helped Ethereum, which surged over 6% in reaction to the Fed’s statement.
Ethereum Price Rise
Ethereum was selling at $2,545, a 4.7% rise at the time of writing, according to CoinMarketCap. If the cryptocurrency continues to rise, it will be the fourth consecutive day of gains since September 17, following a market pattern predicated on pre-central bank rate cuts.
Although the ETH price appears to remain steady in the face of rising selling pressure, Ethereum holders’ approaches vary. Larger ETH holders, those with balances of 100,000 ETH or more, remain quite idle, according to on-chain data from CryptoQuant.
Addresses between 10,000 and 100,000 ETH have been accumulating concurrently, but cautiously. On the other hand, retail investors with balances ranging from 100 to 1,000 ETH continue to sell consistently.
Right now, the ETH price exceeds a significant technical level—the 50-day Simple Moving Average (SMA) at $2,540. If Ethereum can keep this level, analysts say it could mean that bear selling pressure is receding. During trading today, Ethereum peaked at $2,573.
The market still seems wary, though. Should buyers be able to drive the price past the next level of resistance at $2,850, a possible upward trend might start to confirm.
On the other hand, should Ethereum drop below its important support level of $2,250, more decline could follow, potentially bringing the price down to $2,111 or perhaps $2,000.
