Ethereum (ETH) is drawing renewed attention from traders and analysts as its balance on cryptocurrency exchanges surges—potentially signaling a looming sell-the-news event. A prominent crypto analyst has highlighted key on-chain movements and technical indicators that suggest growing pressure in the market, even as broader sentiment remains cautiously optimistic.
Rising Exchange Balances Signal Potential Profit-Taking
Ali Martinez, a well-known crypto trader and technical analyst, recently shared insights indicating a notable increase in Ethereum’s presence on exchange wallets. Over the past two weeks, more than 242,000 ETH—worth over $900 million at current prices—have been transferred to addresses linked to major crypto exchanges.
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This movement is significant because assets held on exchange wallets are generally more liquid and readily available for sale. When large volumes of ETH move to these platforms, it often precedes increased selling activity, especially after periods of strong price appreciation.
Martinez explained:
“Looking at Ethereum’s balance on exchanges reveals a spike in the tokens available to sell. Over the last two weeks, over 242,000 ETH have moved to cryptocurrency exchange wallets. This indicates increased trading activity on exchanges that can contribute to price volatility.”
Such inflows are commonly interpreted as a bearish signal, particularly when combined with other technical warnings.
Tom DeMark Sequential Indicator Flashing Red
Adding to the cautionary tone, Martinez pointed to the Tom DeMark (TD) Sequential Indicator, a popular technical analysis tool used to identify potential trend exhaustion and reversal points. On Ethereum’s daily chart, the indicator is currently showing a clear sell signal.
The TD Sequential works by counting price bars based on specific closing criteria. When it reaches a "countdown" of nine consecutive green candles (up days), it suggests that bullish momentum may be nearing its peak—and a pullback could follow.
Martinez noted:
“The increasing ETH deposits to cryptocurrency exchange wallets hint at the possibility of a sell-off or a spike in profit-taking. Meanwhile, the Tom DeMark (TD) Sequential indicator presents a sell signal on Ethereum’s daily chart.”
He added that the current sequence of nine green candles implies Ethereum could see a short-term retracement lasting one to four days—or potentially enter a longer downward phase—before any resumption of the uptrend.
Key Resistance Zone Ahead: $3,940–$4,054
Despite near-term caution, Martinez emphasized that Ethereum still has a viable path toward $5,000**, provided it clears a critical resistance zone. This zone lies between **$3,940 and $4,054, where historical buying activity was concentrated.
Data shows that over 1.16 million unique addresses previously purchased approximately 574,660 ETH in this range. Such levels often act as psychological and technical barriers, as previous buyers may look to exit at breakeven or take profits if prices return.
However, if Ethereum manages to close a daily candle above **$4,170**, the bearish outlook would likely be invalidated. That breakout could trigger renewed momentum and initiate a new upward countdown phase targeting $5,000.
“If ETH overcomes this hurdle and prints a daily candlestick close above $4,170, the bearish outlook will be invalidated. This could result in a new upward countdown phase toward $5,000.”
This makes the coming days crucial for traders watching both price action and on-chain behavior.
Ethereum ETF Momentum Builds Despite Short-Term Pressure
Interestingly, the rise in exchange balances comes amid growing optimism around Ethereum-based exchange-traded funds (ETFs). Just this week, multiple ETH ETF proposals cleared a key regulatory hurdle with the U.S. Securities and Exchange Commission (SEC), sparking a temporary rally across the Ethereum ecosystem.
While ETF approvals are not guaranteed, each regulatory step forward strengthens institutional interest and long-term adoption prospects. This contrast—between bullish macro developments and bearish short-term indicators—creates a complex market environment.
At the time of writing, Ethereum is trading at $3,732, down 2.31% over the past 24 hours. The dip places it below key moving averages, adding pressure to near-term bulls.
Core Keywords Driving Market Analysis
Understanding Ethereum’s current position requires tracking several core keywords that reflect both technical and fundamental dynamics:
- Ethereum price analysis
- ETH exchange inflows
- sell-the-news event
- Tom DeMark Sequential
- Ethereum ETF
- on-chain data
- crypto market volatility
- ETH resistance levels
These terms encapsulate the primary themes influencing trader sentiment and decision-making in real time.
Frequently Asked Questions (FAQ)
Q: What does an increase in ETH on exchanges mean?
A: When large amounts of Ethereum move to exchange wallets, it often signals that holders are preparing to sell. This can increase selling pressure and contribute to short-term price declines.
Q: What is a sell-the-news event?
A: A sell-the-news event occurs when investors buy an asset in anticipation of positive news and then sell once the news is confirmed—leading to a price drop despite good developments.
Q: How reliable is the Tom DeMark Sequential Indicator?
A: The TD Sequential is widely respected for identifying trend exhaustion points. While not infallible, it has historically provided timely warnings ahead of reversals in both traditional and crypto markets.
Q: Could ETH still reach $5,000?
A: Yes—but only if it breaks above $4,170 with strong conviction. Clearing this level would invalidate current bearish signals and open the door for further upside.
Q: Are Ethereum ETFs confirmed?
A: Not yet. While proposals have cleared initial regulatory hurdles, final approval from the SEC is still pending. Market participants remain hopeful for decisions later in 2025.
Q: Is now a good time to buy ETH?
A: It depends on your strategy. Short-term traders may wait for clearer signals, while long-term investors might view pullbacks as accumulation opportunities—especially with ETF momentum building.
Final Thoughts: Caution Meets Opportunity
Ethereum stands at a crossroads. On one hand, rising exchange balances and technical sell signals suggest caution in the short term. On the other, structural developments like ETF progress and strong historical support levels point to enduring strength.
Traders should monitor both on-chain flows and price action around key levels closely. A daily close above $4,170 would be a powerful bullish confirmation, while failure to hold above $3,700 could accelerate downside momentum.
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As always, combining technical analysis with macro-level catalysts offers the best chance of navigating volatile crypto markets successfully. Whether Ethereum breaks out or pulls back in the coming days, one thing is clear: volatility creates opportunity—for those prepared to act wisely.