Ethereum Sees Largest Exchange Inflows Since January Amid Selling Pressure

Over 150,000 ETH was deposited into exchanges yesterday, marking the highest daily inflow since January.

Such a significant influx of Ethereum into exchanges is often a signal of rising selling pressure, as investors may be positioning themselves to either lock in recent profits or mitigate potential losses in response to market fluctuations.

Over 150.000 $ETH was deposited to exchanges yesterday, the highest since January

Such substantial inflows often indicate rising selling pressure, as users may be looking to capitalize on recent price movements—whether to secure profits or limit further losses. pic.twitter.com/G6GoAsQwbR

— IntoTheBlock (@intotheblock) September 20, 2024

ETH is currently trading at its lowest value against Bitcoin in more than 40 months, a trend that highlights growing concerns among investors.

While Bitcoin exchange-traded fund (ETF) flows have been predominantly positive, Ethereum has faced a contrasting situation, with most ETH ETFs experiencing outflows.

This suggests that institutional investors are gravitating toward Bitcoin, favoring its perceived stability over Ethereum’s higher risk and potentially higher-reward profile.

ETH is trading at its lowest level against BTC in over 40 months

While ETF flows for $BTC have been largely positive, $ETH has experienced mostly outflows. This trend suggests institutional investors are favoring Bitcoin’s relative stability over ETH's higher risk, high-reward… pic.twitter.com/Eie6CBZ3c4

— IntoTheBlock (@intotheblock) September 20, 2024

Despite this overall trend, Ethereum did see a bright spot on September 19. The Ethereum spot ETF recorded a total net inflow of $5.2352 million, with BlackRock’s ETHA ETF contributing the entirety of that amount in a single day. However, this inflow has been overshadowed by the broader outflow trend, further fueling concerns about Ethereum’s near-term market outlook.

Ethereum spot ETF had a total net inflow of $5.2352 million on September 19, and BlackRock ETF ETHA had a single-day net inflow of $5.2352 million. https://t.co/Tvs2oCSxTg

— Wu Blockchain (@WuBlockchain) September 20, 2024

As Ethereum struggles to maintain its value against Bitcoin and faces increasing selling pressure, the market will be closely watching how institutional players continue to respond. If Ethereum’s risk-reward dynamic remains less appealing compared to Bitcoin’s stability, it could lead to further outflows and more downward pressure on ETH prices in the coming weeks.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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