$104M Ethereum transfer sparks uncertainty – Can ETH hold $2.2K?

Ethereum [$ETH] tried to hold above $2.4k but was rejected, dropping to $2,263 at press time. With $ETH touching the $2.2k level, it appears major market players are positioning for a significant move.

Galaxy Digital moves 45,000 $ETH

Through April, Ethereum has recorded significant demand from U.S. institutional investors. In fact, the Coinbase Premium Index remained positive for three consecutive weeks, hitting records last seen in October before the market dip.

Source: CryptoQuant

Notably, institutional accumulation appeared to be rising, but sentiment shifted sharply as the metric turned negative on the 28th of April. This indicates reduced demand, with some investors resuming sales. Lookonchain reported that two wallets linked to Galaxy Digital deposited 45,000 $ETH, worth $104 million, across Binance, Bybit, and OKX.

While transfers to exchanges do not mean immediate selling, they increase the odds of near-term selling. Also adds $ETH supply available to exchanges, which is why the market often reacts bearishly to such moves.

Historically, large token transfers to exchanges have often preceded market weakness. Still, this isn’t a guaranteed signal; the real question is whether Galaxy intends to dump or simply rebalance strategically.

Demand for Ethereum remains stable

Galaxy’s exchange deposits came during a period of relative market stability despite the recent pullback. Interestingly, even as this entity moved funds to exchanges and institutional sentiment turned bearish, overall demand has remained strong.

Looking at exchange activities, it seems buyers have largely outpaced sellers in the past few weeks. Over the past 24 hours, the altcoin recorded $848.7 million in outflows relative to $785 million in inflows.

Source: CoinGlass

As a result, the altcoin’s Spot Netflow dropped to 377%, reaching $63 million as of writing, a clear sign of strong market demand. This suggests that spot buyers are still in control, and recent market weakness is arising elsewhere.

Bullish momentum is cooling down

Although upside momentum has cooled, Ethereum buyers remain in control.

At press time, the upside‑downside Volatility indicator showed the upside at 4.5 versus the downside at 2.9, signaling that bullish momentum is slowing but buyers still dominate. Similarly, the Aroon indicator reinforces these prevailing market conditions.

Source: TradingView

Aroon Up was at 35, while Aroon Down hovered near 21. This shows that upside momentum has weakened, yet downside risk remains limited, leaving neither side in full control. Together, these indicators point to a bullish bias despite softer conditions, suggesting the market pause could set the stage for another upward move.

Final Summary

2 wallets linked to Galaxy Digital move 45,000 $ETH, worth $104 million, to 3 exchanges.

Ethereum [$ETH] upside momentum weakens, but the market still indicates bullish bias.