ethereum has been hovering around the $4,000 mark, driven by a major change in the US Securities and Exchange Commission's (SEC) decision to approve spot eth ETFs. This development has fueled traders' optimism about the price trajectory of the leading altcoin.
However, rising eth inflows into cryptocurrency exchanges could spell trouble.
eth inflows signal selling trend
eth has gained almost 20% over the last month. The resurgence of its performance has been mainly influenced by the market expectation of detecting ethereum ETFs in the United States.
Although the asset's price action was disappointing immediately following the approval, the move towards the $4,000 mark was considered crucial and noteworthy.
Ether volume entering exchanges hit its highest since January, with a net inflow of 140.66k eth on May 26, marking the highest net deposits in over four months.
According to data collected by IntoTheBlock, such large inflows to exchanges generally indicate selling activity, as individuals look to make profits or react to fear, uncertainty, and doubt (FUD).
<blockquote class="twitter-tweet”>
The amount of Ether flowing into exchanges reached the highest point since January!
With a net flow of 140.66k twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth On Saturday, this marks the highest net deposits into exchanges in over 4 months.
High capital inflows into stock markets are usually a sign of selling behavior, as people… pic.twitter.com/XAesouv0XR
– IntoTheBlock (@intotheblock) twitter.com/intotheblock/status/1795367087487013180?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>May 28, 2024
Who takes the profits?
With the recent price gains, Lookonchain x.com/lookonchain/status/1795309439026962453″ target=”_blank” rel=”noopener” data-wpel-link=”external”>observed that a “smart money” investor recently sold 3,025 eth for 11.8 million DAI at an eth price of $3,904, resulting in a profit of approximately $1.11 million.
Furthermore, this investor had accumulated 17,770 eth between 2017 and 2020 at an average cost of $182 per eth. On March 28, 2024, they sold this eth at a price of $3,503 per token, generating a profit of around $59 million.
Another interesting activity performed by an ethereum whale was x.com/lookonchain/status/1795407176506425483″ target=”_blank” rel=”noopener” data-wpel-link=”external”>noted by the platform, which recently withdrew 2,856 eth, valued at $11 million, from Kraken. This whale had previously accumulated 35,176 eth from the same exchange at an average price of $428 per eth between October 2018 and November 2022.
On October 20, 2023, the whale deposited all of this eth back into Kraken when the price was $1,610 per eth, making a profit of approximately $41.6 million. However, this sell-off was ill-timed as the cryptocurrency market recovered shortly after. If the whale had kept his eth, his profit would now be around $122 million.
Binance Free $600 (CryptoPotato Exclusive) – Use this link to register a new account and receive an exclusive welcome offer of $600 on Binance (All the details).
LIMITED OFFER 2024 on BYDFi Exchange: Welcome reward up to $2,888, use this link to register and open a position of 100 USDT-M for free!
<!– ai CONTENT END 1 –>
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
