While the overall market has experienced significant upside, Ethereum closed at a lower price for the second day in a row.
After being rejected at $2.4,000, the altcoin fell to a low of $2.3,000 and is currently testing support at that level. Ethereum whales and financial institutions have increased their selling activity as the market is showing signs of weakness.
Paradigm Capital deposits $27 million $ETH
After Ethereum ($ETH) Toward the end of April, institutional investors withdrew from the market as they were no longer able to hold $240,000.
The Coinbase Premium Index has been negative for 10 consecutive days, suggesting that US institutional investors are turning bearish.
Paradigm Capital is one such institution. According to Lookonchain, $11,615 was deposited into four wallets linked to Paradigm Capital $ETHthe equivalent of $27.29 million was invested in FalconX.
Such moves to deposit on exchanges indicate preparations to sell. Although it has not yet been sold, the company is likely to do so.
In addition to that, individual whales have also started turning to exchange deposits. According to Lookonchain, Garret Jin, also known as BitcoinOG1011 (Short), just deposited 166,023 $ETHthe equivalent of $396 million flowed into Binance.
Considering the earnest money, it seems likely that Garrett Zinn is also preparing to sell. When these assets are sold, it can put significant pressure on the market and cause prices to fall.
Ethereum sell-side activity surges
Garrett Zinn and Paradigm Capital have yet to fully unwind their positions, but Ethereum is facing significant pressure from the sell side.
On May 6th, Ethereum Exchange Netflow increased to 160,900 per month $ETHat 983.3k $ETH Enter the exchange. This trend continues as of this writing, with netflow remaining positive at 7.4k. $ETH.
Such extreme levels of net flows suggest that sellers are very active. As a result, the supply on exchanges has also increased significantly.
The exchange supply ratio showed a significant trend reversal, rising from 0.121 to 0.122 for the second consecutive day. The rise in ESR indicates increased activity on the seller side, while activity on the buyer side has slowed down significantly.
In many cases, an increase in foreign exchange supply strengthens downside risk, leading to lower prices.
What Momentum Indicators Show Us
The downward momentum gained some momentum as selling pressure overwhelmed the market. Ethereum’s Directional Movement Index (DMI) formed a bearish crossover, with +DI below ADX.
Setting the momentum indicator as is suggests that while the market trend is strong, the bullish pressure has weakened significantly.
Therefore, the trend grew faster than the bullish momentum. However, -DI holds below both ADX and +DI, suggesting that buyers still have a slight advantage over the market.
Therefore, if sellers manage to push off the bullish pressure; $ETH In the short term, it could fall below $230,000 and reach $2,250. However, for the bulls to continue, +DI needs to reverse ADX and strengthen the upside.
By doing so, $ETH Let’s flip $2.4,000 again and consider another move towards $2.5,000.
Final summary
- 4 wallets linked to Paradigm Capital have been deposited 11,615 $ETHworth $27.29 million, Garrett Ginn deposited $11,615 $ETHworth $27.29 million.
- $ETH The bullish pressure is facing weakening due to changes in institutional investor sentiment.
