Inflows Fall Below $1 Billion
This week had opened up with alarming inflows into exchanges. Although the outflows had been enough to offset this, the rate at which investors were moving their Ethereum into exchanges was enough to be a cause of alarm. At its peak, Ethereum had seen $5.2 billion flowing into exchanges in a single day, rivaling even that of bitcoin.
Related Reading | Experts Say Ethereum Will Grow 100% To Hit $5,783 By Year-End
📊 Daily On-Chain Exchange Flow
— glassnode alerts (@glassnodealerts)
➡️ $1.5B in
⬅️ $1.6B out
📉 Net flow: -$112.5M
➡️ $880.5M in
⬅️ $781.0M out
📈 Net flow: +$99.5M (ERC20)
➡️ $663.4M in
⬅️ $641.6M out
📈 Net flow: +$21.8M
Will Ethereum Price Follow?
Ahead of the opening of the trading day on Thursday, Ethereum’s price has not been doing well on the charts. It continues to suffer dips that have put it close to testing the $2,900 once more. It is following the general trend of the crypto market but the digital asset on its own is not doing too well according to indicators.ETH price holding above $2,900 | Source:One of the scenarios where Ethereum continues to fall short is on the short-term trend. It is still trading below the 50-day moving average, an important point to hold if there is to be any bullish trend for the short term. The current price does not fall below this range by a large margin but is still enough to question if there is enough momentum for a recovery in the coming days.
Related Reading | Institutional Investors Exit Market As Crypto Declines, New Report Reveals
It is also important to note that the next significant support level for the digital asset lies at $2,824. This means that if bears are able to beat it down past $2,900 this morning, then further dips are expected before the cryptocurrency may be able to find adequate support.
On the flip side of this, the first major resistance point now sits at $3,015. However, as it has proven in the last couple of days, reaching the $3,000 is a harder sell than falling to $2,800.Featured image from Token Information, chart from TradingView.com