Ethereum has seen a drop towards the $2,350 level as on-chain data reveals that whales have been making significant swap flows recently.
Ethereum exchange net flows have been positive recently.
According to data from market intelligence platform In the massEthereum net flow on the Ethereum exchange has been positive recently. “Ethereum net 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 this metric is positive, it means that investors are depositing a net amount of tokens into these exchanges. Since one of the main reasons that coin holders might move their coins to exchanges is for selling purposes, this trend could be bearish for the asset’s price.
On the other hand, a negative indicator indicates a net transfer of Bitcoin from addresses associated with the exchange. This trend indicates that investors may be planning to hold it for the long term, which can naturally be positive for the cryptocurrency.
Now, here is a chart showing the trend in Netflow for Ethereum over the past month:
Looks like the metric has seen positive spikes recently | Source: IntoTheBlock on X
As shown in the chart above, Ethereum’s Netflow has seen a number of spikes in positive territory recently, indicating some large net deposits into the exchanges.
Investors transferred 312,183 ETH to these exchanges over the past week, worth around $745 million at the current exchange rate. Given the sheer volume involved here, it’s likely that whale entities are behind these flows.
These mega investors may have sold the coin as a motive behind these massive transactions. What may add credibility to this is that the price of Ethereum has fallen during this period, and is now below the $2,400 level.
Even before these latest deposits, exchanges had been receiving net inflows throughout the past month, although not in a very large volume. As such, the Ethereum market has been under pressure for a while now.
The net flow will likely continue to be monitored in the coming days, as any further spikes in flows could signal further bearish price action for Ethereum, considering the trend it has been following recently.
Ethereum price
Like Bitcoin and other assets, Ethereum has been going through a rough patch recently, with its price gradually heading downwards. After another drop of more than 6% over the past week, Ethereum has fallen to around $2,350.
The chart below shows the performance of cryptocurrencies 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
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