- An increase in supply on exchanges increases fears of further price drains.
- Ethereum experiences increasing volatility with the possibility of declines in the very near term.
- More than 100,000 ETH moved to the exchanges: Ethereum just changed its market status.
There has been a dramatic occurrence with regard to Ethereum, since within only two days, more than 100,000 ETH have moved to exchanges. The huge cash influx on the exchanges is all that matters regarding selling pressures. On March 12, 2025, according to the Santiment data, more than 9.2 million ETH worth around $18.3 billion were either actively being traded on or are about to be liquidated. Such shifts in capital flow can be inferred as short-term bearish sentiments, with many speculating that such movements indicate an imminent high period of volatility.
More than 100,000 #Ethereum $ETH have been moved to exchanges in the past 48 hours! pic.twitter.com/BLPQ7YZJRQ
— Ali (@ali_charts) March 12, 2025
Increased Activity on the Exchange-Inflow Market
Ethereum’s supply on exchanges has increased sharply- from 9.19 million ETH to 9.23 million ETH in just 24 hours. Hence, showing the movement of assets of traders into exchanges, which has been showing, in history, their preparation for selling.
The 16.5 K transactions recorded in this period imply a significant rise of activity on the market, which could mean that a greater number of investors undertake a wait-and-watch approach because they may expect a price drop or are looking for short-term profit opportunities. This has also continued to underscore the ongoing price fluctuation that the situation surrounding Ethereum is experiencing below critical resistance lines.
Increased Inflows on Exchanges, Increased Pressure on the Market
With an increase in the total amount of Ethereum held on exchanges, it is more likely that selling pressure will increase. There has not yet been sufficient recovery for the price of Ethereum, as it remains just above the considerable support levels. This condition of influx of ETH into exchanges is sustained at this level and may make demand pressure subject to further downside adjustments.
Although investors are very active, the market direction is still mixed. This has also depicted the situation of a market at large in which they continue to deepen absolutely frequent liquidations and market corrections. It is thus important to ascertain whether Ethereum will be able to hold ground and stabilize, or if the incoming supply will sway the market towards deeper corrections in value.
Position and potential for a decline of Ethereum currently
Ethereum currently faces high volatility as short-term holders are trying to sell for a possible drop. The heavy inflow through exchanges may suggest preparing participants for more downside risk. Ethereum’s price continues to face a tough time at the $2,000 mark while high supplies on exchanges may add weight on the downtrend if these tokens enter markets for a sellout. Traders and investors should remain alert to the ongoing tides of change in the market.
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