Ethereum has experienced a decline toward the $2,350 mark, as on-chain analytics indicate that whales have been engaging in substantial exchange inflows lately.
Recent Positive Ethereum Exchange Netflows
As per data from the market intelligence platform IntoTheBlock, the ETH Exchange Netflow has recently shown positive trends. The term “Exchange Netflow” refers to an on-chain metric that monitors the net quantity of Ethereum flowing into or out of wallets associated with centralized exchanges.
A positive value for this metric indicates that investors are depositing more tokens into these platforms than they are withdrawing. Since one of the primary motives for holders transferring their coins to exchanges is often for selling purposes, this trend may indicate bearish sentiment for the asset’s price.
Conversely, a negative reading suggests that a net amount of BTC is being moved away from exchange wallets. This trend signifies that investors may be opting to hold their assets long-term, which can be bullish for the cryptocurrency.
Here’s a chart illustrating the trend in Ethereum Exchange Netflow over the past month:
The metric has shown positive spikes recently | Source: IntoTheBlock on X
The graph above reveals that the Ethereum Exchange Netflow has experienced several positive spikes recently, indicating significant net deposits into exchanges.
In the last week, investors have moved 312,183 ETH to these platforms, amounting to approximately $745 million at the current exchange rate. Given the substantial volume of these transactions, it’s likely they were orchestrated by whale entities.
It’s plausible that these large investors had the intention to sell, a notion supported by the fact that Ethereum’s price has declined during this period, slipping below the $2,400 threshold.
Even prior to these recent deposits, exchanges had already seen net inflows over the past month, though the volume was not as significant. This suggests that the Ethereum market has faced sustained pressure.
The Exchange Netflow will be an important metric to monitor in the coming days, as any additional inflow spikes could indicate further bearish price movements for Ethereum, given the existing trend.
ETH Price Movement
Similar to Bitcoin and other cryptocurrencies, Ethereum has encountered difficult times lately, with its price declining steadily along a bearish trajectory. Following another drop of over 6% in the past week, ETH has fallen to approximately $2,350.
The chart below depicts the performance of the cryptocurrency over the past few months.
The coin's price seems to have been in a downward trend over the last few months | Source:ETHUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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