Cody McGrath 
Ethereum (ETH) has made a big comeback in the last 24 hours, thanks to buying during the US market holiday.
Ethereum (ETH) has risen about 10% in the last 24 hours to $1,155.82, after briefly falling below $1,000. Concerns about a US economic crisis, as well as a wave of crypto bankruptcy, have weighed heavily on ETH this year.
Given the dismal economic context, the recent price rebound could be fleeting. Low trade volumes during the US Independence Day holiday may have contributed to the steep spike.
According to on-chain statistics, ETH is still being moved quickly into exchanges, making the token vulnerable to more sell-offs.
According to data from on-chain analytics startup Santiment, when ETH dropped to approximately $1,000, the volume of tokens traded into exchanges progressively grew.
ETH supply on exchanges has reached a six-month high, indicating that traders have largely dumped the token. Its saturation on exchanges also suggests that a substantial price rebound is unlikely.
According to Santiment, $ETH continues to move rapidly back onto exchanges and is close to breaking 2022 highs. There is a higher risk of a selloff while coins are rising on exchange wallets.
While ETH and Bitcoin have recovered slightly in the last 24 hours, they are still down roughly 68 percent and 56 percent for the year, respectively.
Because of the uncertainties surrounding the timing of the merger, as well as the liquidations of large investors Celsius and Three Arrows Capital, ETH has been hammered especially hard.
Along with continuous liquidations in the industry, rising inflation and Federal Reserve interest rate hikes are projected to weigh on capital flows into the space. Traders are now only interested in shorting large cryptocurrencies.
As a result, any quick market recovery is likely to be fleeting.