Bitrabo Editorial
Ethereum’s price has experienced a dip to the $2,350 mark as recent on-chain data reveals significant exchange inflows from whales.
Recent Positive Trend in Ethereum Exchange Netflows
As per data from the market intelligence platform IntoTheBlock, the ETH Exchange Netflow has shown a positive trend lately. This metric tracks the net amount of Ethereum flowing into or out of wallets associated with centralized exchanges, indicating investor behavior.
A positive Exchange Netflow signals a net deposit of tokens into exchanges, often indicating intentions to sell, potentially bearish for the asset’s price. Conversely, a negative indicator suggests a net outflow, possibly signaling a long-term holding strategy, which could be bullish for the cryptocurrency.
An analysis of the Ethereum Exchange Netflow over the past month reveals spikes in positive territory, reflecting substantial net deposits into exchanges. In the previous week alone, investors transferred 312,183 ETH to exchanges, equivalent to approximately $745 million at current rates, likely orchestrated by whale entities.
This significant inflow may have triggered selling activity among these large investors, coinciding with Ethereum’s price decline below $2,400. Despite ongoing net inflows to exchanges in recent weeks, Ethereum has faced market pressure.
Monitoring the Exchange Netflow in the near future could offer insights into potential bearish price movements for Ethereum, in line with recent trends.
ETH Price Performance
Similar to Bitcoin and other assets, Ethereum has faced a challenging period, with its price steadily trending bearishly. With a drop exceeding 6% in the last week, ETH now hovers around $2,350.
The chart below illustrates the cryptocurrency’s performance over the past few months.