KEYTAKEAWAYS
- Ether sees highest daily inflow since January, indicating potential profit-taking moves.
- Market optimism grows with anticipation of U.S. regulatory approval for Ethereum ETFs.
- Pepe token ventures into new territory, suggesting possible significant price movements.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
ETHER RALLY TRIGGERS MAJOR INFLOW TO CRYPTO EXCHANGES
Significant Inflow of ETH
Following a rapid increase in the price of Ether (ETH), holders have been moving assets to crypto exchanges at an unprecedented rate. On Tuesday, net inflows to exchanges reached 81,840 ETH, valued at approximately $306 million, according to blockchain data from Nansen Intelligence. This marks the highest daily inflow since January 23 and indicates a significant shift from the previous trend of decreasing ETH balances on exchanges.
Pattern of Consecutive Inflows
The inflow on Tuesday was the third consecutive day of such activity, a pattern not seen since March, coinciding with this year’s peak in cryptocurrency prices. Typically, moving assets to exchanges suggests an intention to sell, as opposed to withdrawing tokens for long-term holding. The sudden influx of ETH to exchanges may indicate that holders are looking to capitalize on short-term profits.
Profit-Taking Amid Price Surge
David Shuttleworth, a research partner at Anagram, commented on the situation, noting that the inflows likely represent short-term profit-taking. The price of ETH surged by over 30% in less than 24 hours, rising from around $3,000 to over $3,800. Shuttleworth suggested that individuals are capturing gains from this rapid price increase.
Regulatory Developments Influence Market
The rally in ETH prices and subsequent inflows to exchanges coincided with increasing optimism about U.S. regulatory approval for spot exchange-traded funds (ETFs) for Ether. Recent actions by regulators, who requested updates to ETF applications after a period of inactivity, have fueled speculation and market activity.
CRYPTO TRADING INSIGHT
The current outlook remains bullish, supported by the market’s anticipation of an Ethereum ETF approval, with adjustments likely already made in trader positions.
PEPE is entering uncharted territory, currently priced at $0.0000139, and potentially experiencing significant price gains. Given the strong support and bullish indicators, the expectation is for further upward movement.
For a bearish outlook, wait for a consolidation period before any short positions. The recent market movements indicate a significant bullish trend, with potential for further gains as technical support levels hold strong.
