Ethereum risks turning overbought on shorter timeframes, amounting to sell-offs also as it retests a critical resistance level.
Ethereum‘s native token Ether (ETH) rose by more than 5% to reach its intraday high above $1,930 on May 30. Nonetheless, the ETH/USD pair risks facing another sell-off round due to concerns about a massive ETH inflow into an exchange.
58.7K Ethereum Transferred To FTX In May
On May 30, the Ether address allegedly associated with Three Arrow Capital — a Singapore-based crypto hedge fund, sent 32,000 ETH worth $60 million to the FTX crypto exchange within a span of an hour, on-chain data shows.
The bulk transfer, which follows the fund’s 26,700 ETH deposit to the same exchange earlier in May, raised suspicions that it would dump the Ether stash. That is primarily because, in theory, investors transfer crypto to their exchange wallets only when they want to sell them for other assets.
Nonetheless, the number of Ethereum held by exchanges continued to drop in May, according to on-chain data tracked by Glassnode.
The ETH balance across all the crypto exchanges dropped from 20.45 million to 20.38 million month-to-date (MTD), underscoring that investors are holding their investments for the long term.