Indeed, around 333,000 Ethereum has been deposited in wallets of known crypto exchanges over the past two weeks, according to a Santiment chart shared by technical and on-chain analyst Ali Martinez on May 9.
Taking into account the price of Ethereum at the time of the tweet, Martinez said that the amount which dropped on the exchanges was worth $825 million. As the price continues to fall in the meantime, the value is now closer to $800 million.
The chart clearly shows the price of Ethereum and its supply on exchanges moving in opposite directions. This is typical behavior for an asset, consistent with changes in the market sentiment.
Traditionally, an increase in inflows to exchanges suggests increased selling pressure, decreased demand as more participants seek to sell rather than buy, and an increase in the asset’s availability for purchase – which altogether contributes to knocking down its price.
Indeed, the price of Ethereum at press time stood at $2,427, marking a 4.75% drop on the day and a 13.13% decrease compared to its price seven days before, according to CoinMarketCap data.
On the other hand, a panel of crypto experts is bullish on Ethereum at least when it comes to the asset’s longer-term outlook, as it awaits its Merge update that will mark the network’s official transition to the Proof-of-Stake (PoS) consensus mechanism.
Specifically, the specialists predicted that the DeFi token would reach a top of $6,872 on average in 2022, about $2,000 more than its previous all-time high of $4,900, before falling to $5,783 by the end of the year.
Whether Ethereum will manage to meet those optimistic expectations, remains to be seen.