In the midst of a potential sell-the-news event, Ethereum’s balance on crypto exchanges is seeing a significant increase, according to a popular crypto analyst. Ali Martinez, a crypto trader with a large following on X, reports that over the past two weeks, hundreds of thousands of ETH have been transferred to wallets associated with crypto exchanges. This surge in ETH deposits suggests heightened trading activity on exchanges, which could contribute to increased price volatility.

Martinez also highlights the Tom DeMark (TD) Sequential Indicator, which is flashing a sell signal on Ethereum’s daily chart. This indicator is commonly used to predict potential trend reversals based on previous closing prices. With the current green nine candlesticks on the daily chart, Martinez suggests that there may be a spike in selling pressure, leading to a retracement of ETH for one to four daily candlesticks or even the start of a new downward countdown phase before the uptrend resumes.

In terms of price levels, Martinez notes that Ethereum faces a significant resistance barrier between $3,940 and $4,054, where over 1.16 million addresses had previously purchased around 574,660 ETH. Overcoming this hurdle and achieving a daily candlestick close above $4,170 would invalidate the bearish outlook and potentially pave the way for a new upward countdown phase towards $5,000.

Earlier this week, proposals for ETH-based exchange-traded funds (ETFs) cleared a crucial regulatory hurdle, leading to a rise in the Ethereum ecosystem. As of now, Ethereum is trading at $3,732, representing a 2.31% decrease in the past 24 hours.

Please note that the opinions expressed by The Daily Hodl are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the individual’s responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is it an investment advisor.