• Ethereum worth $16.7 million was sent to crypto exchange FalconX, which could be positioned to sell. 
  • Individual investors are also seen depositing ETH to centralized platforms, likely to book profits. 
  • Ether currently trades at $2,230 and could trigger a potential reversal, especially if Bitcoin price fails to move higher. 

Ethereum price has been in a multi-year consolidation and recently “broke out” according to some analysts who forecast a bullish future for ETH. However, taking a closer look at on-chain flows suggests that investors might be looking to sell. 

Read more: Ethereum Price Prediction: ETH attempts to flip $2,300 into support

Ethereum investors send ETH to exchanges 

The bankrupt crypto lending and borrowing platform Celsius sent 7,500 ETH worth nearly $16.7 million ETH to exchanges on December 5, according to data from Spot On-chain. A look at the history of Celsiu’s wallets shows a whopping 37,269 ETH has been sent to centralized entities since November 14, 2023.  The recent transfer is the second-highest inflow after the $19.47 million deposit on November 30.

Additionally, a popular crypto investor with the screenname “smartestmoney.eth” has reportedly begun selling their ETH. This entity deposited $10.08 million worth of ETH to Binance at the time of writing, according to data from Lookonchain. 

While these two deposits are not large enough to trigger a sell-off for the ongoing rally, investors should be cautious of what Bitcoin will do next. The 2% drop in BTC price caused altcoins to crash 15% to 30% on December 4. Hence, a continuation of the downside movement in pioneer crypto could cause serious damage to altcoins, including ETH.

More on Bitcoin price: Week Ahead: Altcoin plays for traders as Bitcoin crosses $42,000

ETH price in a wedge formation not ascending triangle

Many investors point out that Ethereum price action over the past months has led to the formation of an ascending triangle. These analysts forecast that the recent move was a breakout and that ETH is primed for a further move north. While this outlook is not wrong, investors need to take another look at Ether’s price action.

Read more on ETH’s ascending triangle: Ethereum price dilemma or buy signal before 60% rally

Considering the steady build-up of selling pressure and Bitcoin price slowdown, a short-term reversal could be in place. Instead of looking at Ethereum price action over the past few months as an ascending triangle, a different approach could be a rising wedge. 

Ethereum price is currently trading at $2,230, which is the upper limit of this setup. This area coincides with the range’s midpoint at $2,230, making it a tough level to crack. Hence, rejection here seems likely, especially considering the inflows to exchanges. Therefore, ETH could slide lower in the short-term while remaining bullish on the long-term. 

A bearish breakout of the rising wedge is unlikely, considering the current market conditions. Hence, the ideal level for accumulation is the weekly support level of $1,935. If this level gives in, then the weekly bullish breaker, extending from $1,562 to $1,759, is the best place for long-term holders to step in. 

ETH/USDT 1-week chart

ETH/USDT 1-week chart

Invalidation of this move will occur if Ethereum price flips the $2,230 hurdle into a support floor. In such a case, ETH could revisit the $2,784 level, which was last seen in May 2022.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.

More TRON News

XRP fails to break past $0.50, posting 20% weekly losses

XRP fails to break past $0.50, posting 20% weekly losses

XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22. 

More Ripple News

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

More Bitcoin News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP