$396 mln ETH moves: Are Ethereum whales preparing for another sell-off?
Paradigm Capital deposits $27 million in ETH their positions entirely, Ethereum is facing significant sell-side pressure. On the 6th of May, Ethereums Exchange Netflow rose to a monthly 160.9k ETH, with 983.3k ETH entering exchanges. This trend persisted at press time, with Netflow remaining positive at 7.4k ETH. Netflow at such extreme levels suggests sellers have been highly active. As a result, supply on exchanges has also increased significantly. Source: CryptoQuant Exchange Supply Ratio made a significant trend reversal, rising from 0.121 to 0.122 over two consecutive days. The rising ESR signaled increased sell-side activity, while buyers have slowed down significantly. Often, a higher exchange supply has strengthened downside risk, leading to lower prices. What momentum indicators say With selling pressure overwhelming the market, downside momentum has slightly strengthened. Ethereums Directional Movement Index (DMI) formed a bearish crossover, with +DI falling below ADX. With the momentum indicators set as they are, this suggests that although the market trend is strong, bullish pressure has weakened significantly. Thus, the trend grew faster than the bullish momentum. However, with the -DI holding both the ADX and the +DI below, it suggests buyers still have a slight edge over the market. Thus, if sellers manage to push bullish pressure aside, ETH could drop below $2.3k