200k Ethereum Flows Into Exchanges, More Downside Ahead?
22 Novembre 2021 - 8:00PM
NEWSBTC
According to on-chain data, around 200k ETH entered exchanges
yesterday, a sign that Ethereum might face more downside soon.
Central Exchanges Observe Inflow Of 200k ETH As pointed out by a
CryptoQuant post, more than 200k ETH entered exchange wallets
yesterday. At the current rate, this amount is worth about $839
million. The relevant on-chain indicator here is the Ethereum
netflow, which shows the net amount of the crypto entering or
exiting central exchanges. Its value is calculated by taking the
difference between the inflows and the outflows. When the metric
has negative values, it means outflows are dominating the inflows.
That is, investors are withdrawing more ETH than they are
depositing. Such a trend is usually bullish for the crypto. On the
other hand, positive netflows imply exchanges are receiving a
higher amount of Ethereum compared to what’s being taken off. As
investors usually transfer their coins to exchanges either for
withdrawing to fiat or for purchasing altcoins, prolonged positive
values of the indicator can be bearish. Related Reading
| Ethereum Scarcity: After London Fork, ETH’s Supply Change
Drops To Almost Zero Now, here is a chart that shows the trend in
the ETH netflow indicator over the past couple of weeks: Looks like
the indicator has shown a positive spike recently | Source:
CryptoQuant As the above graph shows, a huge positive netflow spike
was seen yesterday as around 201k ETH entered exchange wallets.
This is a significant amount of Ethereum, and as is visible in the
chart, no inflows of close to this level have been seen during the
period. By the way, one interesting feature in the graph are the
humongous outflow spikes from about a week ago. These outflows
amounted to around $9 billion in ETH exiting exchanges in just a
matter of three days. The inflow seen yesterday can cause a decline
in the price of the crypto in the short term. However, in the long
term, signs for the coin are still bullish as the exchange reserves
have been sharply dropping off recently. Ethereum Price At the time
of writing, ETH’s price floats around $4.2k, down 10% in the last
seven days. Over the past month, the crypto has gained 4% in value.
Related Reading | TA: Ethereum Trims Gains, Why This Level Is
The Key For Fresh Increase The below chart shows the trend in the
price of Ethereum over the last five days. ETH's price has moved
mostly sideways in the last few days | Source: ETHUSD on
TradingView Since Ethereum made a new all-time high above $4.8k,
the price has mostly seen a trend of decline. Earlier the price
dropped down to as low as 3.9k, before recovering to the current
levels. Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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