On-chain
data
shows
that
the
Ethereum
exchange
net
flows
have
been
highly
positive
recently,
a
sign
that
selling
may
be
taking
place
in
the
market.
Ethereum
Exchange
Netflows
Have
Seen
A
Spike
Recently
In
a
new
post
on
X,
CryptoQuant
head
of
research
Julio
Moreno
discussed
the
latest
trend
in
Ethereum’s
exchange
netflow.
The
“exchange
netflow”
here
refers
to
an
on-chain
metric
that
keeps
track
of
the
net
amount
of
ETH
moving
into
or
out
of
the
wallets
of
all
centralized
exchanges.
When
this
metric’s
value
is
positive,
it
means
that
these
platforms
are
receiving
a
net
number
of
coins
right
now.
As
one
of
the
main
reasons
holders
might
deposit
coins
to
exchanges
is
for
selling-related
purposes,
this
trend
can
potentially
bearish
consequences
for
the
asset’s
price.
On
the
other
hand,
the
indicator’s
negative
reading
implies
that
exchange-associated
wallets
are
observing
net
withdrawals
currently.
Investors
may
be
moving
their
coins
away
from
the
custody
of
these
central
entities
for
long-term
holding,
so
such
a
trend
may
prove
to
be
bullish
for
the
cryptocurrency.
Now,
here
is
a
chart
that
shows
the
trend
in
the
Ethereum
exchange
netflow
over
the
last
few
months:
The value of the metric appears to have been quite high in recent days | Source: @jjcmoreno on X
The
above
graph
shows
that
the
Ethereum
exchange
netflow
has
registered
some
large
positive
spikes
recently.
These
net
deposits
have
been
of
a
scale
only
observed
in
March.
According
to
Moreno,
these
deposits
have
mostly
been
headed
towards
Binance
and
Bybit.
As
mentioned
before,
net
exchange
inflows
can
indicate
that
selling
is
taking
place
in
the
market,
although
this
doesn’t
necessarily
have
to
be
the
case.
Sometimes,
large
deposits
use
one
of
the
other
services
these
platforms
provide,
like
derivatives
contracts.
Whatever
the
case,
though,
volatility
does
tend
to
rise
following
large
deposits.
The
chart
shows
that
the
rally
top
back
in
March
saw
the
indicator
assume
high
values
as
investors
participated
in
profit-taking.
Recently,
Ethereum
has
observed
a
sharp
surge,
fueled
by
positive
news
surrounding
the
spot
exchange-traded
funds
(ETFs).
Given
this
rally,
it’s
possible
that
profit-taking
may
once
again
be
the
goal
behind
the
positive
net
flows.
So
far,
though,
ETH
has
managed
to
stave
off
this
potential
selloff,
as
its
price
has
remained
relatively
high.
It’s
uncertain,
however,
how
long
demand
can
continue
to
absorb
the
possible
selling
pressure
if
deposits
continue
to
flow
into
these
platforms
in
the
coming
days.
ETH
Price
Ethereum
started
a
move
up
during
the
past
day
as
its
price
breached
the
$3,950
mark.
The
rise
only
lasted
briefly,
though,
as
the
asset
returned
below
the
$3,800
level.
Looks like the price of the asset has observed a surge over the last few days | Source: ETHUSD on TradingView
Featured
image
from
Kanchanara
on
Unsplash.com,
CryptoQuant.com,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
