Ethereum's net flow movements on spot exchanges are pivotal in understanding its price dynamics. Net outflows, indicating transfers to cold wallets, reduce selling pressure and are seen as a positive price signal. Conversely, net inflows suggest potential selling, creating downward pressure.

In early 2022, Ethereum's price fell from $4,000 to $1,000 amid dominant net inflows. However, from July 2022, net outflows prevailed, aiding price recovery. Sustained net outflows are crucial for continued price growth, as they decrease exchange supply and favor demand.

Ethereum's ability to maintain net outflows will support its price and influence altcoin performance, making net flow data a vital indicator for investors.