On-chain data shows that the Ethereum exchange’s net flow saw a negative spike over the past week, a potential sign that investors are accumulating.
Ethereum Exchange Netflow Was Red Last Week
As highlighted by institutional DeFi solutions provider Sentora in a new article on X, Ethereum has seen net outflows from exchanges over the past week. The relevant metric here is “Exchange Netflow,” which measures the net amount of ETH flowing into or out of wallets connected to centralized exchanges.
When the value of this metric is positive, it means that investors are depositing a net number of tokens on these platforms. Since one of the main reasons holders deposit their coins on exchanges is for selling purposes, this type of trend can be bearish for the price of the asset.
On the other hand, the indicator being below zero suggests that outflows dominate inflows on the stock exchanges. Such a trend may be a sign that investors are in an accumulation phase, which can naturally be bullish for the cryptocurrency.
As data shared by Sentora shows, Ethereum recorded a weekly Exchange Netflow value of -$978.45 million, indicating that traders made a massive amount of net withdrawals.
The significant outflows came as Ethereum saw a decline over the past week. As Sentora explains:
This signals aggressive accumulation where investors are likely “buying the dip” and removing assets to cold storage or on-chain environments, tightening the liquidity supply despite negative price momentum.
Last week’s price drop was also accompanied by a drop in total transaction fees on the network, meaning transfer activity decreased. The blockchain recorded approximately $2.64 million in fees over the past week, a drop of more than 15% week-over-week.
ETH had a brief visit below $2,800 before rebounding
Ethereum saw a decline to $2,780 on Thursday, but the asset was able to rebound as it now floats just below $3,000.
Interestingly, ETH’s bottom was roughly at the same level as that of a major on-chain supply cluster, as shown in a chart shared by analyst Ali Martinez in an article
In the chart, Martinez attached data from the Ethereum UTXO (URPD) realized price distribution from on-chain analytics company Glassnode. This metric essentially tells us how much ETH supply was last traded at the different price levels the coin has visited over its history.
There is a huge supply zone located at $2,772 on URPD, suggesting that a large number of investors have their cost base there. Generally, these levels act as a support limit during downtrends, as traders who bought there buy the dip to defend it.
