Ethereum price could crumble under rising selling pressure

Ethereum supply on exchanges increased rapidly in the past three days.
ETH token inflow to exchange platforms climbed 62% last week.
Ethereum price could face selling pressure from the rising token reserves, pushing ETH lower.

Ethereum supply on exchanges noted a considerable increase between December 21 and Saturday. As ETH reserves in exchange wallets climb, there is more Ether available to sell, typically increasing the selling pressure on the altcoin.

ETH price could suffer a pullback in response to the selling pressure. At the time of writing, ETH price sustains above $2,200 on Binance.

Also read: Four altcoins most likely to bounce during Christmas holidays: LTC, STORJ, ILV, DYDX

Ethereum tokens flood exchange platforms

Based on on-chain data from Santiment, Ethereum supply on exchanges as a percentage of Ether’s total supply climbed from 8.07% to 8.16%. The increase in ETH tokens on the exchange platform is significant in comparison to the past three months, seen in the chart below. Mounting selling pressure could push ETH price lower.

Ethereum supply on exchanges. Source: Santiment

IntoTheBlock data reveals that in the past week, Ethereum inflow to exchanges (aggregated exchanges) climbed 62% in the past week.

Ethereum inflow to exchanges. Source: IntoTheBlock

Network Realized Profit/Loss shows spikes in profit-taking by ETH traders between October 31 and December 23. Large volume of profit-taking could result a pullback in ETH price.

Ethereum Network Realized Profit/Loss. Source: Santiment

Ethereum developers recently set tentative dates for activating the Cancun/Deneb upgrade on public Ethereum test networks.

The schedule for upgrades is as follows:

Goerli fork on January 17
Sepolia fork on January 31
Holesky fork on February 7

The dates are subject to change if any unexpected bugs are discovered by developers. In the recent All Core Developers Consensus (ACDC) call, devs agreed to reconvene to discuss progress in the next meeting on January 4.

Share: Cryptos feed

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.