Ethereum, the second biggest cryptocurrency, has been having a rough time lately. Its price has been going up and down, and analysts are trying to figure out if people are buying it up or selling it off.
Exchange Reserves: A Warning Sign?
One analyst, Shayan, looked at the amount of Ethereum held in exchange wallets. This is important because it tells us how much Ethereum is available to be sold.
Shayan noticed that between June and August, the amount of Ethereum on exchanges increased. This suggests that people are selling their Ethereum, which could put downward pressure on the price.
He also pointed out that Ethereum’s price chart recently showed a “death cross,” which is a technical signal that often indicates a price drop. This, combined with the increase in exchange reserves, makes Shayan think that Ethereum might continue to fall in price.
What Does the Future Hold?
However, Shayan also said that we need to look at other factors, like the futures market, before making any firm conclusions.
Even though the exchange reserves are concerning, Ethereum’s price has gone up slightly in the past day. But this doesn’t change the fact that it’s down 7% over the past week.
Another analyst, CrediBull, thinks that Ethereum might go down a bit more before people start buying it again. He also warned people not to get too caught up in the short-term price swings and to stick to their investment plans.
