Ethereum has witnessed a drop towards the $2,350 level as on-chain data reveals the whales have been making large exchange inflows recently.
Ethereum Exchange Netflows Have Been Positive Recently
According to data from the market intelligence platform IntoTheBlock, the ETH Exchange Netflow has been positive recently. The âExchange Netflowâ here refers to an on-chain indicator that keeps track of the net amount of Ethereum thatâs flowing into or out of the wallets connected to centralized exchanges.
When the value of this metric is positive, it means the investors are depositing a net number of tokens into these platforms. As one of the main reasons holders may transfer their coins to the exchanges is for selling-related purposes, this trend can be bearish for the assetâs price.
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On the other hand, the negative indicator implies that a net amount of BTC is being transferred from exchange-related addresses. Such a trend implies the investors may be planning to hold into the long-term, which can naturally be bullish for the cryptocurrency.
Now, here is a chart that shows the trend in the Ethereum Exchange Netflow over the past month:
