Ether Exchange Net Flow Highlights ETH Whale Behavioral Pattern
Ethereum netflow chart shows that peak trade flows often occur when ETH price is trading short or long low term.
New
The net exchange flow of Ether (ETH) over the past two years highlights a pattern of behavior among Ether whales that market analysts believe is set to pump the price of the second highest great cryptocurrency.
“Exchange netflow” is an indicator that measures the net amount of cryptocurrency entering or leaving the wallets of all centralized exchanges. The metric value is calculated by taking the difference between trade inputs and outputs.
Data shared by a pseudonymous trader from crypto analytics firm CryptoQuant indicates that ETH whales have been constantly sending their holdings to exchanges to boost the price of ETH and sell it at a higher market price.
Net flow data from the Ether exchange confirms the behavioral pattern of ETH whales and indicates that it has been persistent since 2020. The price pump is often followed by whales selling their holdings at a price of higher market, which itself precedes a correction, as can be seen in the chart below.
ETH price movement against currency inputs. Source: CryptoQuantThe pattern of behavior is surprising given that a positive net flow or an increase in the number of deposits on centralized exchanges is often seen as a bearish signal, as traders mainly send their assets to stock exchanges to sell.
In his analysis, the trader noted that FX deposits periodically rise during short- or long-term dips in the asset. The netflow chart confirms that the peak in FX flows often came at a time when ETH price was trading at lower levels.
Related: Ethereum Merge Increases Block Creation with Faster Average Block Time
The heavy deposits of ether whales on the exchanges continued...
Ethereum netflow chart shows that peak trade flows often occur when ETH price is trading short or long low term.
New
The net exchange flow of Ether (ETH) over the past two years highlights a pattern of behavior among Ether whales that market analysts believe is set to pump the price of the second highest great cryptocurrency.
“Exchange netflow” is an indicator that measures the net amount of cryptocurrency entering or leaving the wallets of all centralized exchanges. The metric value is calculated by taking the difference between trade inputs and outputs.
Data shared by a pseudonymous trader from crypto analytics firm CryptoQuant indicates that ETH whales have been constantly sending their holdings to exchanges to boost the price of ETH and sell it at a higher market price.
Net flow data from the Ether exchange confirms the behavioral pattern of ETH whales and indicates that it has been persistent since 2020. The price pump is often followed by whales selling their holdings at a price of higher market, which itself precedes a correction, as can be seen in the chart below.
ETH price movement against currency inputs. Source: CryptoQuantThe pattern of behavior is surprising given that a positive net flow or an increase in the number of deposits on centralized exchanges is often seen as a bearish signal, as traders mainly send their assets to stock exchanges to sell.
In his analysis, the trader noted that FX deposits periodically rise during short- or long-term dips in the asset. The netflow chart confirms that the peak in FX flows often came at a time when ETH price was trading at lower levels.
Related: Ethereum Merge Increases Block Creation with Faster Average Block Time
The heavy deposits of ether whales on the exchanges continued...
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