ETH Is There a Selling Wave
Indicators are increasing that Ethereum may enter a price correction wave, following massive inflows into exchanges and a noticeable decline in derivative market support, raising fears of selling pressure that could threaten the recent gains of the currency.
According to an analysis published on July 1, nearly 100,000 Ethereum coins, estimated to be worth over $250 million, were deposited into the Binance exchange in two large batches. Such deposits are usually a signal of potential increased supply, which could lead to selling pressure if investors' appetite to buy declines.
The analysis noted that the spot market price of Ethereum continued to record local peaks above $2,500 since June 26, while open interest for Ethereum contracts on Binance saw a noticeable decline, recording lower peaks of $5.6 billion. This difference is an indicator of traders' caution and a decrease in the desire to open new positions.
This comes at a time when the market is experiencing a decline in overall liquidity, as the net liquidity of the U.S. Federal Reserve dropped from $6.2 trillion to $5.84 trillion in recent weeks, which may negatively impact the performance of cryptocurrencies.
Ethereum is currently trading at $2,451, down 0.5% over the last 24 hours, and is approaching a technical resistance level at $2,455,$BNB $BTC #TrumpVsMusk #StrategyBTCPurchase #NODEBinanceTGE #USCorePCEMay #Trump100Days