ethereum has witnessed a drop towards the $2,350 level as on-chain data reveals that whales have been making large trading inflows recently.
ethereum Exchange Net Flows Have Been Positive Recently
According to data from the market intelligence platformx.com/intotheblock/status/1831976171556557246″ target=”_blank” rel=”noopener nofollow”> In the blocketh net exchange flow has been positive recently. The “net exchange flow” 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 amount of tokens into these platforms. As one of the main reasons holders may transfer their coins to exchanges is for selling purposes, this trend can be bearish for the asset price.
On the other hand, the negative indicator implies that a net amount of btc is being transferred from exchange-related addresses. This trend implies that investors may be planning to hold their positions for the long term, which can naturally be bullish for the cryptocurrency.
Now, here is a chart showing the trend on the ethereum Netflow exchange over the past month:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/Ethereum-drops-to-2350-as-whale-deposits-top-751-million.jpeg" alt="ethereum Netflow Exchange” width=”1708″ height=”427″/>
Looks like the metric has seen positive spikes recently | Source: x.com/intotheblock/status/1831976171556557246/photo/1" target="_blank" rel="noopener nofollow">IntoTheBlock on x
As shown in the chart above, the ethereum Exchange Netflow has seen a couple of spikes into positive territory recently, suggesting that some large net deposits have occurred on exchanges.
Investors have transferred 312,183 eth to these platforms over the past week, worth approximately $745 million at the current exchange rate. Given the massive scale involved, it is likely that whale entities were behind these inflows.
It is possible that these giant investors sold as a reason for these large transactions. Something that might add credibility to this is that the price of ethereum has been falling in this period, now falling below the $2,400 level.
Even before these latest deposits, exchanges had received net inflows over the past month, although their scale was not that large. Therefore, the ethereum market has been under pressure for a while.
The Exchange Netflow will be a topic of interest in the coming days as any further increase in inflows could suggest more bearish price action for ethereum, considering the trend it has been following recently.
eth Price
Much like bitcoin and other assets, ethereum has been going through a rough patch recently, with its price gradually heading towards a bearish trajectory. After recording another drop of over 6% over the past week, eth has fallen to around $2,350.
The chart below shows how cryptocurrencies have performed over the past few months.
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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
