More than 100,000 Ethereum has withdrawn from the exchange. What does this mean for the price?


Data on the chain shows that the exchange observed more than 100,000 ETH outflows from Ethereum yesterday. What this might mean for the price of the token.

Over 100,000 Ethereum exited the exchange yesterday

As an analyst explained in CryptoQuant postal, As more than 100,000 ETH withdrew from the exchange wallet, the net traffic experienced a significant negative growth yesterday.

this”Network traffic“Is an indicator that reveals the net movement of tokens into or out of exchange wallets. Its value is calculated by taking the difference between inflow and outflow.

When the indicator has a positive value, it means that a net amount of coins enters the exchange wallet. This trend may mean that investors are bearish on cryptocurrencies because they send coins from their personal wallets to sell on exchanges.

On the other hand, when investors withdraw a net amount of coins, they will see a red value. Therefore, the negative value of this indicator indicates that holders are currently optimistic about Ethereum.

Related Reading | Ethereum scarcity: After the London fork, the supply change of ETH is almost zero

Now, this is a chart showing the value trend of ETH’s net traffic on all exchanges in the past 15 days:

Looks like the indicator has recently shown a huge negative spike | Source: CryptoQuant

As shown in the figure above, about 103k ETH was withdrawn from the exchange yesterday. According to the current exchange rate, the value of this Ethereum is approximately US$490 million.

Now, this is what analysts think this trend might imply.First of all, this is long-term bullish because it shows that big players like this are in demand corporate investor At the current price level.

Related Reading | This is hilarious: Bitcoin denier Steve Hank is now in Ethereum

Second, in the short term, this may end up being neutral or bearish. Quantitative analysts believe that, because the whale that caused this huge outflow of funds can temporarily complete the purchase, the purchasing power may decline later, which may lead to a possible drop in prices.

Ethereum price

At the time of writing, Ethereum price Floating around US$470, it has risen by 0.1% in the past 7 days. In the past 30 days, tokens have accumulated 20% of their profits.

The chart below shows the price trend of ETH over the past five days.

Ethereum price chart

ETH's price seems to have recovered from the crash down to $4.5k | Source: ETHUSD on TradingView

In the past few days, Ethereum has exhibited high volatility as the price fluctuated between US$480 and US$450 many times.

Currently, ETH seems to have recovered from the crash that occurred after the cryptocurrency hit an all-time high. However, if the volatility continues, it is difficult to say whether this recovery will last too long.

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



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