Crypto Analytics Firm Santiment Issues Ethereum Warning, Says ETH at Higher Risk of Sell-Off – Here’s Why


On-chain metrics indicate Ethereum (ETH) could be at risk of a sell-off, according to the crypto analytics firm Santiment.

Santiment notes ETH is moving “rapidly” onto exchanges and has risen to its highest ratio within six months.

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A 2021 study published by Santiment indicates large upticks in exchange inflows tend to lead to an average price drop of 5% for crypto assets.

Source: Santiment

Ethereum is trading for $1,116 at time of writing. The second-ranked crypto asset by market cap is up more than 1% in the past 24 hours.

Santiment also says Bitcoin (BTC) witnessed a “massive uptick” in longs on exchanges on Monday.

Explains the firm,

“Trader optimism often correlates with holidays, which means there needs to be a greater degree of cautiousness of whales punishing the overly eager.”

Source: Santiment

Bitcoin is trading for $20,026 at time of writing. The top-ranked crypto asset by market cap is down more than 0.5% in the past 24 hours.

Santiment also notes the 365-day return for the average Bitcoin trader is -45%.

Source: Santiment

Additionally, the analytics firm says BTC whale transaction spikes are occurring mostly on minor price rallies, which it argues is keeping the top crypto asset’s prices dormant.

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“The vast majority of the largest spikes in Bitcoin whale transactions over the past week are occurring after small $100 to $200 BTC price gains. Prices have subsequently fallen after each of these temporary increases in $100,000+ or $1 million+ transactions.”

Source: Santiment

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