Ethereum saw a drop towards the $2,350 level as on-chain data reveals that whales have recently made significant exchange inflows.
Ethereum exchange netflows have been positive recently
According to data from market analytics platform IntoTheBlock, ETH exchange netflow has been positive recently. “Exchange netflow” here refers to an on-chain indicator that tracks the net amount of Ethereum 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 why holders may transfer their coins to exchanges is for selling purposes, this trend can be bearish for the price of the asset.
On the other hand, the negative indicator implies that a net amount of BTC is being transferred from addresses linked to the exchange. Such a trend implies that investors may be considering holding their assets for the long term, which can naturally be bullish for the cryptocurrency.
Now here is a chart that shows the trend of Ethereum Exchange Netflow over the past month:
Looks like the metric has seen positive spikes recently | Source: IntoTheBlock on X
As seen in the chart above, Ethereum Exchange Netflow has recently seen a few spikes into positive territory, suggesting that significant net deposits into exchanges have taken place.
Investors transferred 312,183 ETH to these platforms over the past week, worth about $745 million at the current exchange rate. Given the scale of the operation, it is likely that whale entities are behind these inflows.
These colossal investors may have been behind these large-scale transactions. What could add credibility to this hypothesis is that the price of Ethereum has plummeted during this period, now slipping below the $2,400 level.
Even before these latest deposits, exchanges had been receiving net inflows throughout the past month, albeit not as large in magnitude. Thus, the Ethereum market has been under pressure for some time now.
Exchange Netflow could be one to watch in the coming days, as any further spike in inflows could suggest more bearish price action for Ethereum, given the trend that has followed recently.
ETH Price
Much like Bitcoin and other assets, Ethereum has been going through a rough patch lately, with its price gradually moving towards a bearish trajectory. After registering a further decline of over 6% over the past week, ETH has fallen to around $2,350.
The chart below shows what the performance of cryptocurrencies looks like over the past few months.
The price of the coin appears to have been sliding over the last few months | Source: ETHUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com
