Analysis of on-chain data indicates a significant increase in Ethereum exchange net flows, suggesting a potential increase in selling activity within the market.
Rise in Ethereum Exchange Netflows
A recent post by Julio Moreno, the head of research at CryptoQuant on X, delves into the current trend of Ethereum’s exchange netflow. This metric monitors the net movement of ETH into or out of centralized exchange wallets.
Positive netflow values imply an influx of coins into these platforms, potentially indicating a selling trend, whereas negative readings suggest withdrawals from exchange wallets, hinting at bullish sentiment as investors may hold onto their assets for the long term.
Recent data reveals a notable spike in Ethereum exchange netflows, with large deposits being directed towards platforms like Binance and Bybit, reminiscent of the March spike, potentially leading to increased market volatility.
Ethereum’s recent price surge following positive ETF news could be driving these deposits, hinting at profit-taking motives. Despite maintaining a relatively high price, the sustained demand may face challenges in absorbing the selling pressure if the influx of deposits continues.
ETH Price Movement
In the last 24 hours, Ethereum briefly surpassed $3,950 before retracing below $3,800, reflecting a volatile price trend.
