Ethereum Traders Deposit $600M into Exchanges as ETH Price Rally overtakes BTC

Ethereum Price Analysis:

Ethereum price reached a weekly peak of $2,391 on Sept 10, registering three consecutive days in profit. However, rising ETH deposits across exchanges suggest bulls could struggle to reclaim the $2,500 territory.

ETH Price Overtakes BTC With 11% Gains amid Positive Macroeconomic Outlook

The global crypto markets received a major boost following lower-than-expected US Non-Farm jobs  raised investors’ hopes for an imminent Fed rate cut.

Since Friday, Ethereum has emerged as one of the best performers among the top-10 ranked cryptocurrency assets by market capitalization.

The ETHUSD price action chart above shows how the world’s second-largest cryptocurrency recorded gains in excess of 11.26%, moving from a 30-day low of $2,150 on Sept 6 to reach $2,391 as of publication on Sept 10.

Meanwhile, the blue-shaded area in the BTCUSD price chart shows that Bitcoin only recorded a 10.16% upswing during the same period. This clearly shows that ETH has now outpaced BTC amid the current bullish market phase.

Traders Deposited ETH Worth $600M into Exchanges Within 20-Days

Amid Ethereum chart-topping performance, recent on-chain data trends suggests a major sell-off looms large. On-chain data trends show that Ethereum traders have made considerable deposits into trading platforms in the last two weeks.

CryptoQuant’s Exchange Reserves chart below provides clear insights into investors’ dominant sentiment by tracking real-time changes in ETH balances deposited across exchanges and trading platforms.

Ethereum traders held a total of 18.54 million ETH in their exchange-hosted wallet reserves as of Aug 23. But based on the latest data, that figure has now skyrocketed to 18.81 million ETH at the time of writing on Sept 10.

This reflects that Ethereum traders have added 260,000 ETH worth approximately $600 million to the short-term market supply in less than 20 days.

Historically, there’s often a negative correlation between cryptocurrency prices and exchange deposits. Investors rapidly depositing such a large amount of coins into trading platforms amid a price rally signals that ETH investors could be looking to lock in some of their unrealized gains in the days ahead.

If this scenario plays out, ETH price will likely endure an initial correction phase, potentially struggling to break the $2,500 level.