The United States continued to invest in cryptocurrencies while celebrating the 4th of July Independence Day. As a result, investors managed to raise the price of the leading altcoin project Ethereum. As a result, ETH price reached a new high at $1,120. However, with the rise of the Ether price, some remarkable data of the altcoin emerged. Cryptocurrency analysis company Santiment has shared some data for Ethereum that terrifies investors. Here are the details…
Leading altcoin Ethereum dumps on crypto exchanges
Crypto forecasting firm Santiment has analyzed the supply of leading altcoin ETH on exchanges. Accordingly, investors are dumping their Ether holdings back into cryptocurrency exchanges. In addition, the density of entries to exchanges continues to increase. Accordingly, foreign currency inflows to crypto currency exchanges are increasing. cryptocoin.com As we have reported, this situation causes cryptocurrencies to be under intense selling pressure in the future.
In fact, the fact that investors transferred their funds to the stock markets seems to be related to the big crash in June. As it is known, many altcoins suffered great losses in June. Now, investors may be looking for new avenues by transferring their funds to stock markets. Ethereum dropped as low as $800 in its decline last month. This $800 price level was quite significant as the selling pressure stopped at this point. ETH price then started to recover and it is currently trading at $1,120. The increase in current entries is described as the footsteps of an intense selling pressure that will emerge in the future.
What are the other possibilities?
However, the increase in entries to the stock markets is not always a sign of selling pressure. Exchanges like Binance and Coinbase sometimes transfer funds from hot wallets to cold wallets. The reason for this is estimated that the mentioned exchanges increase the liquidity in the markets and provide funds to market makers. If this is the cause of the current increase in entries, it would be unreasonable to infer that investors are willing to sell their holdings. Accordingly, the event has nothing to do with the moves of the exchanges, not the crypto investors.
Still, it is worth noting that the cryptocurrency market witnessed massive liquidations in June. As it is known, the high outflows last month seemed to be related to the decentralized exchanges not investing in ETH as much as before. Because of this, large entries into the stock markets appeared. However, the demand for secured loans in the DeFi space has declined. As a result, investors are turning from risky assets like cryptocurrencies to traditional investment vehicles. The reason for this is estimated to be rising inflation rates and interest rate hikes around the world.
How about ETH price?
At the time of writing, ETH was changing hands at $1,158. However, the leading altcoin continues to be under pressure from bears. It seems that Ether is far from gaining sufficient purchasing support. It is also currently trading below the 21-day moving average. Therefore, the price is not expected to rise any time soon.
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