Ethereum Exchange Reserve Surges by 163K ETH Amid On-Chain Indicator Fluctuations
Ethereum (ETH) experienced a decline of more than 2% on Tuesday as a result of increased selling pressure indicated by a rise in its exchange reserve. Despite this, various on-chain metrics suggest a mixed sentiment among investors during Ethereum’s price consolidation phase.
Over the past five days, Ethereum’s exchange reserve has shifted from a downtrend to an uptrend. The exchange reserve represents the total amount of the cryptocurrency held on an exchange platform. An increase in the exchange reserve of an asset typically signifies higher selling pressure, while a decrease indicates the opposite.
Data from CryptoQuant reveals that Ethereum’s exchange reserve surged by approximately 163,000 ETH, equivalent to around $407.5 million. This increase suggests that Ethereum may face short-term selling pressure until its exchange reserve begins to decline once more.
In contrast to its price performance, Ethereum has seen a notable uptrend in the total number of holders, with over 4 million new non-empty wallets added in the past three months, according to Santiment data. This growth brings the total number of Ethereum holders to nearly 127 million, indicating a growing interest among new market participants in Ethereum’s long-term price potential. In comparison, Bitcoin’s total holders decreased by 50,000 during the same period.
While the number of Ethereum holders is on the rise, whale activity within the network has significantly decreased from its peak during the market rally in early March. Santiment data shows a notable decline in Ethereum whale transactions, dropping from over 115,000 transactions between March 13-19 to 31,800 transactions between August 21-27, representing only about a quarter of the March figures. This decline in whale activity correlates with reduced volatility in Ethereum, except for spikes on May 20 and August 5, as noted by Santiment analysts.
Regarding technical analysis, Ethereum is currently trading around $2,450, with a 2.5% decrease on the day. The convergence of the 200-day, 100-day, and 50-day Simple Moving Averages (SMA) has limited Ethereum’s upward movement, leading to a potential downward shift within a key price range with support at $2,400 and resistance at $2,817.
The Relative Strength Index (RSI) and Stochastic Oscillator indicators suggest a short-term bearish outlook for Ethereum. The future price trend of Ethereum will likely be determined by its movement relative to the key support and resistance levels. A breach below the $2,400 support could lead Ethereum towards $2,111, while a successful breakout above $2,817 and the SMA resistance could propel Ethereum towards $3,237.
