Ethereum (ETH) attempted to hold above $2.4K but was rejected, dropping to $2,263 at press time. As ETH reaches the $2.2k level, it appears that major market participants are gearing up for a significant move.
Galaxy Digital moves 45,000 ETH
Through April, Ethereum saw significant demand from US institutional investors. In fact, the Coinbase Premium Index has remained positive for three straight weeks, reaching record highs last seen in October before the market crash.
Notably, institutional accumulation appeared to increase, but sentiment changed sharply when the indicator turned negative on April 28. This indicates reduced demand, with some investors resuming selling. Lookonchain reported that two wallets linked to Galaxy Digital deposited 45,000 ETH, worth $104 million, on Binance, Bybit and OKX.
Although transfers to exchanges do not mean an immediate sale, they increase the chances of a sale in the short term. Also adds the supply of ETH available to exchanges, which is why the market often reacts bearish to such moves.
Historically, large token transfers to exchanges have often preceded market weakness. However, this is not a guaranteed signal; the real question is whether Galaxy intends to shed or just strategically rebalance.
Ethereum demand remains stable
Galaxy’s foreign exchange deposits were made during a period of relative market stability despite the recent downturn. Interestingly, even as this entity shifted funds to exchanges and institutional sentiment turned bearish, overall demand remained strong.
When it comes to foreign exchange activity, it appears that buyers have significantly outpaced sellers over the past few weeks. Over the past 24 hours, the altcoin saw $848.7 million in outflows, compared to $785 million in inflows.
As a result, the altcoin’s Spot Netflow fell 377%, reaching $63 million at the time of writing, a clear sign of strong market demand. This suggests that cash buyers are still in control and that recent market weakness is manifesting elsewhere.
Bullish momentum cools
Although the bullish momentum has calmed, Ethereum buyers remain in control.
At press time, the Up and Down Volatility Indicator showed an increase to 4.5 from a decline to 2.9, signaling that bullish momentum is slowing but buyers still dominate. Likewise, the Aroon indicator reinforces these current market conditions.
Aroon Up was at 35, while Aroon Down was hovering near 21. This shows that the bullish momentum has weakened, but the downside risk remains limited, leaving neither side in full control. Together, these indicators indicate a bullish bias despite softer conditions, suggesting that the market pause could pave the way for another upward move.
Final summary
- 2 wallets linked to Galaxy Digital move 45,000 ETH, worth $104 million, to 3 exchanges.
- Ethereum’s (ETH) bullish momentum is weakening, but the market still indicates a bullish bias.
