60k ETH Exit Exchanges, Here’s Why It’s Bullish For Ethereum

On-chain data shows massive Ethereum outflows of 60k ETH on spot exchanges. Such deeply negative netflows could be a bullish signal for the coin.

Ethereum All Exchanges Netflow Shows Huge Negative Spike

As pointed out by a CryptoQuant post, the Ethereum all exchanges netflow showed a negative spike yesterday as 60k ETH exited exchanges.

The all exchanges netflow is an indicator that’s defined as the difference between the exchange inflows and the outflows.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The “inflow” is the amount of Ethereum moving into exchanges from personal wallets. An increase in this value implies an increase in the supply of ETH for selling purposes or altcoin purchasing.

The “outflow” is just the opposite; it’s the number of coins exiting exchange wallets. When this metric moves up, it might mean there is a buying pressure in the market as more investors store their coins outside exchanges.

Related Reading | Hoskinson Celebrates Ethereum Smart Contracts On Cardano, How This Company Enables It

Get 110 USDT Futures Bonus for FREE!

As the netflow is the inflow minus the outflow, a positive value indicates more ETH is moving into exchanges than out. Similarly, a negative value implies the contrary.

Now, here is how the chart for the Ethereum all exchanges netflow looks like:

Ethereum Netflow

Ethereum Netflow

The Ethereum netflow shows a massive negative spike | Source: CryptoQuant

Looking at the above graph, it seems like the indicator is showing a negative spike at the moment. But what could such a value mean for the price?

Related Reading | TA: Ethereum Faces Hurdles, What Could Trigger Fresh Rally

Well, as explained before, when the netflow turns negative, it means the net amount of ETH is directed out of exchanges than in.

Investors pulling out their coins from exchanges could be because they feel a buying pressure in the market right now. Such a situation might mean there is a bullish sentiment among the market.

Will There Be An ETH Supply Shock Soon?

Some analysts think an Ethereum supply shock might hit soon as massive amounts of the crypto continues to be burnt after the London hardfork.

The ETH exchange reserve, an indicator that shows the total number of coins held on exchanges, is also continuing to decline as outflows dominate the inflows.

At the time of writing, Ethereum’s price floats around $3.1k, down 3% in the last 7 days. The below chart highlights the trends in the price of the cryptocurrency over the past three months.

Ethereum Price Chart

Ethereum Price Chart

After a downtrend, it looks like ETH is now slightly moving up | Source: ETHUSD on TradingView

While the price is going down right now and looks bearish, the demand for Ethereum is only increasing when there isn’t enough supply. This could prove to be quite bullish for the market in the long-term.

Featured image from Unsplash.com, charts from CryptoQuant.com, TradingView.com


Tagged : / / / / / /

Analysts Predict Bullish Trend by Ethereum as It Tests The Waters beyond $1400

Ethereum and the broader cryptocurrency market have seen mixed price action over the past few days and weeks.

Ethereum Price is Surging

Despite the selling pressure it has experienced at $1,200, ETH beat all odds and surged beyond $1,400, recording a new all-time high at $1,423.38.  At press time, the coin is trading at $1,345.23, trying to maintain its domain around the $1,400 mark.

In the last 5-6 sessions, Ethereum started a sharp surge above the $1,200 zone, outperforming Bitcoin. The top altcoin’s price broke a significant barrier near 1,245 USD and 1,250 USD to move further into the bullish area.

The bulls struggled to maintain the uptrend causing a rally above $1,280 resistance. At the beginning, there was a break above a sharply shrinking triangle with resistance approaching $1,245 on ETH/USD’s hourly chart. The price of Ether is now over 10% and is trading well above its 100-hour moving average.

ETH was previously set to form a maximum at around the $1,346 zone, while the price continued to consolidate gains. An initial support on the downside is near $1315 level. It is approaching the 23.6% Fib correction level of the last wave from $1,215 to $1,346.

To the upside, $1345 and $1350 levels had initial barriers. A sharp break above the $1,350 level opened the door for a quick advance. In this case, Ether’s price went on to exceed $1400 and $1420, and beyond before its minor correction. Consequently, the next significant resistance is near the $1500 level.

Analyst Claims ETH Could Rally Higher 

In a recent tweet, one analyst stated that he closely monitors Ethereum for $1,250 in support before seeing significant short-term growth.

He noted that a break above this level could result in an all-time test and that the bulls should survive a break below $1170.

Ethereum is currently trading at significant points. The way it continues to respond to crucial levels just above and below the current price will provide some vital insights in the medium term.

However, not everyone is in such a bullish position. For example, Mike McGlone, BI’s head of strategic strategy for Bloomberg Intelligence, said in his latest report that the advantages of Bitcoin, Ethereum, and Ripple in 2020 show the resilience of fintech in a world increasingly dominated by zero or negative values quantitative help.

According to McGlones, Ether, the coin will trade in the $500-700 range by 2021.

Although most forecasts look somewhat optimistic, cryptocurrency remains volatile as usual. The crypto bull market is known for its quick fixes. With that said, you need to be prepared for a bumpy ride even if ETH is about to hit new record highs.

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / / / / / / /
Bitcoin (BTC) $ 27,792.45 1.26%
Ethereum (ETH) $ 1,649.04 0.55%
Litecoin (LTC) $ 64.47 1.68%
Bitcoin Cash (BCH) $ 233.71 1.64%