Kraken, one of the most famous crypto exchanges, is warning Ethereum (ETH) investors due to the high trend of ETH selling pressure. Kraken says the price of Ethereum may be under downward pressure, according to on-chain metrics. In addition, Kraken conveys that with the increase in ETH flowing to the exchanges, it may mean that the bears have the upper hand over the bulls. In addition, Kraken states that investors are moving their ETH to exchanges, thus increasing the demand for ETH sales. With these developments, the buyer demand of ETH is gradually decreasing.
No Clear Outcome for Ethereum
Kraken says that if this trend continues, marketable supply will increase and therefore the price of ETH will fall. Although Kraken emphasizes an increasing selling pressure for Ethereum, he also states that there is always the possibility of ETH to make a splash, and these developments perhaps pave the way for this.
In addition to all these, Kraken reports that it is currently in the bullish zone according to the MVRV Z score (the score that compares the market value of an asset with the realized value and detects overbought or oversold conditions).
Ethereum (ETH), on the other hand, is underperforming by almost 37.5% from its all-time high price point. Ethereum’s MVRV Z score of 1 point indicates that ETH is in the oversold region and may rise again. This score of ETH pulls it into the oversold zone before the price rebounds and may pave the way to push the trend up.
Risk Dominates the Whole Market
In addition, Kraken states that the uncertain macroeconomic conditions that also dominate traditional markets are affecting the pricing of the crypto market. For these reasons, exchanges say that Ethereum (ETH) is currently more at risk than Bitcoin (BTC) and points out that there is a general decline in the crypto market. Kraken adds:
“It is difficult to determine what awaits the crypto markets. However, the on-chain data is currently charting a slightly downward trend. Metrics such as FX net position change suggest market participants are potentially moving BTC and ETH to long-term stockpiling and marketable supply.”