Darkfost2025-01-23

Ethereum under pressure : What's happening ?

Ethereum is currently facing a lot of FUD and bearish sentiment as it continues to underperform. Let’s look at some key data to understand what’s happening. 1- The Ethereum netflow on Binance shows that inflows are dominating since september 2024. Over this period, there were six days with inflows exceeding 100k ETH, compared to just one day of outflows at the same level. 2- Ethereum reserves on Binance have steadily increased, rising from 3.6M ETH in September to 4.3M ETH today, with a peak of over 4.5M ETH. That’s nearly 1M ETH added in just five months. 3- Binance's taker buy-sell ratio has stayed bearish since September, with its EMA consistently in negative territory. This indicates that sell orders volume have dominated throughout this period. 4- Between September and December, open interest increased, fueling Ethereum’s rally as long positions were set. However, open interest is now declining since december, with the 7 EMA crossing below the 50 EMA, signaling a bearish shift. The data clearly shows that Ethereum is in a bearish phase. Investors appear to be taking precautions by selling to secure profits or rotating their capital elsewhere. For now, the overall sentiment on ETH remains cautious.