Ethereum Exchange Inflows Hit Highest Level Since January as ETH Price Slides Below $3.9K

Ethereum has been hovering near the $4,000 mark, driven by a major U-turn in the US Securities and Exchange Commission's (SEC) decision to approve spot ETH ETFs. This development has increased traders' optimism about the price trajectory of the leading altcoins.

However, increased ETH inflows to cryptocurrency exchanges could lead to problems.

ETH inflows indicate a selling trend

ETH is up nearly 20% over the past month. Its performance rebound was mainly influenced by market expectations for the discovery of ETFs in the US.

Although the asset's price action was disappointing immediately after the approval, the move towards the $4,000 mark is considered crucial and noteworthy.

The volume of Ether entering exchanges reached its peak since January, with a net inflow of 140.66 thousand ETH on May 26, representing the highest net deposits in more than four months.

According to data collected by IntoTheBlock, these large inflows to exchanges typically indicate selling activity, as individuals aim to lock in profits or respond to Fear, Uncertainty, and Doubt (FUD).

The amount of Ether flowing to exchanges has reached the highest point since January!

With a net flow of 140.66 thousand $ Ethereum On Saturday, this represented the highest net deposits on the exchanges in more than 4 months.

High flows into exchanges are usually a sign of selling behaviour, as people either… pic.twitter.com/XAesouv0XR

— IntoTheBlock (@intotheblock) May 28, 2024

Who takes the profits?

With recent price gains, Lookonchain Notice One “smart money” investor recently sold 3,025 ETH for 11.8 million DAI at an ETH price of $3,904, resulting in a profit of approximately $1.11 million.

Furthermore, this investor accumulated 17,770 ETH between 2017 and 2020 at an average cost of $182 per ETH. On March 28, 2024, they sold ETH at $3,503 per token, generating a profit of about $59 million.

Another interesting activity carried out by the Ethereum whale was male Through the platform, which recently withdrew 2,856 ETH, worth $11 million, from Kraken. This whale had previously collected 35,176 ETH from the same exchange at an average price of $428 per ETH between October 2018 and November 2022.

On October 20, 2023, the whale deposited all of this ETH back into Kraken when the price was $1,610 per ETH, making a profit of approximately $41.6 million. However, these sell-offs were wrongly timed as the cryptocurrency market surged shortly after. If the whale had kept Ethereum, its profits would now be about $122 million.