A widely followed crypto analyst says Ethereum (ETH) balances on crypto trading platforms are skyrocketing amid a possible news sell-off event.
In a new thread, crypto trader Ali Martinez told his 62,700 followers on social media platform X that hundreds of thousands of ETH have been transferred to wallets linked to crypto exchanges over the past two weeks.
“Looking at Ethereum balances on exchanges, we see a surge in tokens available for sale. Over the past two weeks, over 242,000 ETH have been moved into crypto exchange wallets. This indicates increased trading activity on exchanges, which may contribute to price fluctuations.”
According to Martinez, the large ETH transfer comes as a key signal – the Tom DeMark (TD) Sequential indicator – is flashing a sell signal on the daily charts of major smart contract platforms, signalling a possible news sell event.
“Increasing ETH deposits into crypto exchange wallets suggests a possible surge in selling pressure and profit-taking, while the Tom DeMark (TD) Sequential Indicator is signaling a sell signal on the daily chart of Ethereum.
The current 9 green candles on the daily chart suggest that a surge in selling pressure could cause ETH to reverse in 1-4 daily candles, or even begin a new downward countdown phase before the uptrend resumes.”
The TD Sequential indicator is typically used to predict potential trend reversals in an asset based on the previous closing price.
Martinez concluded that if Ethereum can secure a daily close above $4,170, it has a path to the $5,000 price level.
“The most important resistance for Ethereum is between $3,940 and $4,054, where over 1.16 million addresses previously purchased around 574,660 ETH.
If ETH overcomes this hurdle and secures a daily close above $4,170, the bearish outlook will be invalidated. This could trigger a new upward countdown phase towards $5,000.”
Earlier this week, the Ethereum ecosystem received a boost after a proposal to create an ETH-based exchange-traded fund (ETF) cleared a key regulatory hurdle.
At the time of writing, Ethereum was trading at $3,732, down 2.31% over the past 24 hours.
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