According to on-chain data, around 200k ETH entered exchanges yesterday, a sign that Ethereum might face more downside soon. Central Exchanges Observe Inflow Of 200k ETH As pointed out by a CryptoQuant post, more than 200k ETH entered exchange wallets yesterday. At the current rate, this amount is worth about $839 million. The relevant on-chain indicator here is the Ethereum netflow, which shows the net amount of the crypto entering or exiting central exchanges. Its value is calculated by taking the difference between the inflows and the outflows. When the metric has negative values, it means outflows are dominating the inflows. That is, investors are withdrawing more ETH than they are depositing. Such a trend is usually bullish for the crypto. On the other hand, positive netflows imply exchanges are receiving a higher amount of Ethereum compared to what’s being taken off. As investors usually transfer their coins to exchanges either for withdrawing to fiat or for purchasing altcoins, prolonged positive values of the indicator can be bearish. Related Reading | Ethereum Scarcity: After London Fork, ETH’s Supply Change Drops To Almost Zero Now, here is a chart that shows the trend in the ETH netflow indicator over the past couple of weeks: Looks like the indicator has shown a positive spike recently | Source: CryptoQuant As the above graph shows, a huge positive netflow spike was seen yesterday as around 20...
