- Ethereum outlook among investors has turned negative based on data from Santiment.
- There is a spike in inflow of Ethereum to exchanges, increasing the selling pressure.
- Analysts believe Ethereum remains at risk of decline, as the altcoin posts nearly 10% losses overnight.
Ahead of Ethereum’s transition to proof-of-stake, there is a spike in ETH inflow to exchanges. As Ethereum piles up across exchange wallets, analysts note a shift in sentiment among traders.
Also read: Ethereum is dirt cheap ahead of the Merge, claims analyst
Ethereum supply on exchanges climbs steadily
In the weeks leading up to Ethereum’s transition from proof-of-work to proof-of-stake, the altcoin’s supply on exchanges has climbed steadily. 13.78% of Ethereum’s total supply is on exchanges based on data from crypto intelligence platform Santiment.
The steadily climbing supply is indicative of an increase in selling pressure on exchanges. With higher Ethereum reserves on exchanges, more ETH is available to sell, putting the altcoin’s price at risk of decline.
Ethereum supply on exchanges
Sentiment on Ethereum turns negative
Based on data from Santiment, weighted social sentiment, a metric that combines the positive/negative commentary, and multiplies by the amount of social volume has turned negative. Typically when weighted social sentiment gets too high, it coincides with a price top and when sentiment is negative it coincides with a bottom.
The weighted social sentiment of Ethereum dropped to -0.54, indicating a shift in sentiment from positive to negative, in the weeks leading up to the merge.
Weighted social sentiment
Analysts predict decline in Ethereum price
PostyXBT, a leading crypto analyst, identified that Ethereum’s structure has broken down. The analyst argued that 'bounces are for shorting' vibes are back. Ethereum’s market structure and price trend has changed, and the overall outlook is bearish.
ETH Perpetual Futures Contracts
McKenna, a crypto analyst and trader argues that Ethereum is poised for a liquidity grab once the altcoin plummets below $1,460. FXStreet analysts believe that Ethereum could plummet to $1,284 in order to collect liquidity. For more information and specific conditions, check the video below:
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.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs, which recorded outflows of more than $280 million this week.
Three reasons why Solana could see a double-digit decline
Solana price appears to have found some support on Friday, recovering slightly from the sharp sell-off registered earlier this week. However, on-chain metrics and technical indicators show increasing chances of a further decline in prices, suggesting that the rebound could be short-lived.
Tron network revenue exceeds Bitcoin, Ethereum and Solana in Q3
The Tron network (TRX) generated the highest revenue in the third quarter since its inception, outperforming leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000
Bitcoin is hovering around its key support level; a sustained close below this threshold could signal further declines. On the other hand, Ethereum and Ripple have closed below their critical support levels, indicating further downsides.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.