ethereum price hasn't exactly lived up to its promise as the month has progressed, despite a stellar start to the month. While this bearish pressure has been widespread in the overall cryptocurrency market, regulatory uncertainty has been an additional concern for eth, generating negative sentiment around the “king of altcoins.”
Interestingly, the latest on-chain disclosure shows that a substantial amount of ethereum has hit exchanges so far in March, suggesting that investors could be losing confidence in the cryptocurrency's long-term promise.
Are investors losing confidence in ethereum?
According to data from CryptoQuant, more than $913 million in net eth transfers to centralized exchanges have been recorded so far in March. This chain information was revealed through a eth-Transfers-to-CEXs-%C2%BFSpurred-by-Regulatory-Turmoil?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=onchainschool” target=”_blank” rel=”nofollow”>quick post on the data analysis platform.
This net movement of funds represents the largest volume of ethereum transferred to centralized exchanges in a single month since June 2022. Although the end of March is still a week away, this exchange inflow appears to be a complete departure from the pattern seen in recent years. . months.
<img decoding="async" class="aligncenter wp-image-599276 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/03/March-sees-nearly-1-billion-in-net-Ethereum-flow-to.jpg" alt="ethereum ” width=”860″ height=”542″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/03/2024-03-23-06.16.06.jpg?w=1280 1280w, https://www.newsbtc.com/wp-content/uploads/2024/03/2024-03-23-06.16.06.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/2024-03-23-06.16.06.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/03/March-sees-nearly-1-billion-in-net-Ethereum-flow-to.jpg 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/2024-03-23-06.16.06.jpg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/03/2024-03-23-06.16.06.jpg?w=1140 1140w” sizes=”(max-width: 860px) 100vw, 860px” loading=”lazy” data-recalc-dims=”1″/>
Chart showing total monthly netflow of eth on centralized exchanges | Sources: eth-Transfers-to-CEXs-%C2%BFSpurred-by-Regulatory-Turmoil?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=onchainschool" rel="nofollow">CryptoQuant
As shown in the chart above, October 2023 was the last time cryptocurrency exchanges witnessed a positive net flow. It is worth noting that there was significant movement of ethereum tokens away from centralized platforms in the following months until this month.
Meanwhile, a separate piece of data has come to light supporting the mass exodus of eth to centralized exchanges. Popular crypto analyst Ali Martínez revealed in X Nearly 420,000 ethereum tokens (equivalent to $1.47 billion) have been transferred to cryptocurrency exchanges in the past three weeks.
The flow of large amounts of cryptocurrency into centralized exchanges is often considered a bearish signal as it may be an indication that investors may be willing to sell their assets. Ultimately, this may put downward pressure on the price of the cryptocurrency.
Substantial fund movements towards trading platforms could also represent a change in investor sentiment. It could be a sign that investors are losing faith in a particular asset (eth, in this case).
Furthermore, the recent regulatory hurdle surrounding ethereum specifically accentuates this hypothesis. According to the ethereum-in-the-hot-seat-sec-security-label-looms/” target=”_blank” rel=”nofollow”>latest reportThe United States Securities and Exchange Commission is considering an investigation into classifying the eth token as a security.
eth Price
At the time of writing, the ethereum token is valued at $3,343, reflecting a 4% price drop in the last 4 hours. According to data from CoinGecko, eth is down 11% last week.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/X1tEAA6f/" alt="ethereum” width=”2174″ height=”1434″/>
ethereum loses the $3,400 level again on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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