Ethereum experienced significant volatility after climbing to $2,600 before retreating toward $2,400. At press time, ETH traded near $2,524, up 2.26% daily and 2% weekly.
The pullback coincided with a major deposit from Wintermute, a market maker. According to Lookonchain, Wintermute transferred 61,847 ETH worth $160.3 million to Binance and Coinbase. While such transfers can raise selling concerns, an exchange deposit does not necessarily confirm a sale. Market makers regularly move inventory between venues for liquidity provision and operational purposes.
The deposit's actual impact depends on its purpose. If intended for liquidity provision, it may not represent directional selling. However, if the inventory enters the market as sales, it could increase short-term supply and create downside volatility.
Exchange Supply at Historic Lows
Despite Wintermute's deposit, Ethereum's broader Exchange Supply continued declining. Data showed that Ethereum's Exchange Supply Ratio reached 0.125 at press time, a level unseen since 2016. This metric indicates that exchanges held a smaller share of Ethereum's circulating supply.
The ratio declined for ten consecutive days, suggesting that the market absorbed individual deposits without creating a broad buildup of immediately sellable ETH. Historically, lower exchange supply can reduce selling pressure by limiting the readily available coins for sale.
Whale Distribution Pressures Price
Whale activity told a different story. According to SwissIntelligence, 196 whales were distributing ETH, compared with 125 accumulating. This distribution imbalance suggested that large-holder selling continued to weigh on price momentum.
Technical indicators reinforced this weakness. The True Strength Index declined after forming a bearish crossover days earlier, while the Balance of Power remained negative. Both signals indicated that sellers retained a short-term advantage despite declining exchange balances.
Ethereum remained caught between fewer immediately sellable coins available on exchanges and persistent whale selling pressure.
