Ethereum Exchange Reserve Rises As Netflows Become Positive
As pointed out by an analyst in a CryptoQuant , exchanges have observed net ETH inflows recently, swelling up their reserves.The “all exchanges netflow” is an indicator that measures the net amount of Ethereum moving into or out of wallets of all exchanges. The metric’s value is calculated by taking the difference between the inflows and the outflows.
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Looks like the indicator's value has recently risen above zero | Source:As you can see in the above graph, the Ethereum netflows have sharply increased to positive values in the past couple of weeks.
The effect of these net inflows can be seen through the exchange reserve indicator, which measures the total amount of ETH sitting on exchanges. Below is the chart for it.
The indicator seems to have surged up recently | Source:As the graph shows, the Ethereum exchange reserve has sharply increased in value in the past week. Which is expected, as the netflows have been positive lately.
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The exchange reserve is often called the “sell supply” of the crypto. If the trend continues and the reserve keeps on going up, the near term outlook may be bearish for the price of the coin.ETH Price
At the time of writing, Ethereum’s price floats around $3k, down 6% in the last seven days. Over the past month, the coin has parted with 8% in value.
The below chart shows the trend in the price of the crypto over the last five days.The price of ETH seems to have dipped down over the past twenty-four hours | Source:Ethereum’s price had surged up to almost $3.2k a couple of days back, but has since come back down a bit to the current levels. At the moment, it’s unclear when the coin may show further recovery.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com