Ethereum Market Faces Selling Pressure but On-Chain Signals Indicate Strength

A significant transfer of 45,000 Ethereum (ETH) by Galaxy Digital has sparked concerns about institutional selling pressure in the cryptocurrency market. The transfer, valued at over $100 million, was made across three major exchanges: Binance, Bybit, and OKX.

At first glance, this move may indicate a large-scale sale of ETH, contributing to the recent price weakness. However, on-chain data suggests that the situation is more complex than it appears.

CryptoQuant figures show that Ethereum exchange reserves have reached their lowest level since 2016, with around 14.5 million tokens in circulation. Moreover, over 331,000 ETH have been withdrawn from exchanges since April 19, significantly surpassing the Galaxy Digital transfer.

On the corporate side, BitMine has accumulated a substantial amount of ETH in recent weeks, and US spot ETH exchange-traded funds (ETFs) have recorded three consecutive weeks of inflows. These indicators suggest that demand for ETH remains strong, despite the recent price decline.