Ethereum netflows seem to be negative across all exchanges right now, as exchange reserves continue their downward trend.
Ethereum Reserves On A Downtrend
The Ethereum all exchanges reserve is an indicator that shows the total number of coins held in wallets of all exchanges.
Here is how the Ethereum all exchanges reserve looks like at the moment:
ETH all exchanges reserve continues to fall down
The above chart makes it clear that Ethereum all exchanges reserve has been continuing its downtrend since the past few months.
The latest downward curve seems to show quite a sharp trajectory. A decrease in the exchange reserves should mean there isn’t much selling pressure in the market. If this steep downtrend continues, the price could go up.
The other indicator of interest is the Ethereum all exchanges netflow. The netflow is defined as just the difference between the exchange inflows and the exchange outflows.
The exchange inflows is the value of the ETH being sent into exchange wallets from personal addresses. While outflows are the opposite.
All Exchanges Netflow = Inflows – Outflows
Below is a chart that shows the latest trends in the value of the ETH all exchanges netflow.
ETH all exchanges netflow shows deep red
As the graph shows, the last few days show negative all exchanges netflow for Ethereum. This means more investors are sending their ETH to personal wallets from exchange wallets than the other way around.
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When the value of the indicator goes up, it means investors want to sell of their crypto. On the other hand, a decrease like what’s happening right now should mean there isn’t much selling pressure.
Here is how the price chart looks like over the last 6 months:
ETH’s value has been going down since sometime now, with no sign of recovery. It’s unclear whether the market is bearish or not right now. If the exchange netflows are anything to go by, a deep negative trend could mean the price might go up soon.
Featured image from Pexels.com, charts from TradingView.com, CryptoQuant