According to reports from AMBCrypto, Garret Jin (BitcoinOG11) deposited 166,023 ETH worth $396 million into Binance, while four wallets linked to Paradigm Capital deposited 11,615 ETH worth $27.29 million into FalconX. These significant deposits suggest both institutional and whale investors are preparing for potential selling activities. The deposits to exchanges typically indicate readiness to sell, though neither party has executed sales yet. Such large-scale deposits could significantly impact market dynamics if converted to sell orders.
As reported by AMBCrypto, Ethereum's Exchange Netflow rose to a monthly 160.9k ETH on May 6th, with 983.3k ETH entering exchanges. The trend persisted at press time, with Netflow remaining positive at 7.4k ETH. The Exchange Supply Ratio made a significant trend reversal, rising from 0.121 to 0.122 over two consecutive days, signaling increased sell-side activity. These extreme netflow levels indicate sellers have been highly active, with supply on exchanges increasing significantly and strengthening downside risk potential.
According to AMBCrypto analysis, Ethereum's Directional Movement Index (DMI) formed a bearish crossover, with +DI falling below ADX, indicating downside momentum has strengthened. The -DI holding both the ADX and +DI below suggests buyers still have a slight edge over the market. However, with the trend growing faster than bullish momentum, ETH could drop below $2.3k and reach $2,250 in the short term. For a bullish continuation, +DI needs to flip ADX, potentially allowing ETH to flip $2.4k again and eye another move towards $2.5k.
As reported by AMBCrypto, the Coinbase Premium Index has remained negative for 10 consecutive days, suggesting U.S. institutional investors have turned bearish. This institutional sentiment shift follows Ethereum's failure to hold above $2.4k towards the end of April, after which institutional investors stepped back from the market. The sustained negative premium indicates continued selling pressure from institutional participants, contributing to the overall bearish sentiment in the Ethereum market.
