Ethereum net flows have been on a rollercoaster ride in recent times, with the trend mostly leaning towards negative figures. This could potentially signal bullish momentum building up for the price of Ethereum. Net flows essentially refer to the difference in the number of coins entering or leaving crypto exchanges over a specific period.
When net flows are positive, it indicates that more Ethereum is flowing into exchanges, suggesting potential sell-offs as investors capitalize on price increases. Conversely, negative net flows imply that more coins are leaving exchanges than entering, hinting at higher buying pressure compared to sell-offs.
According to data from Coinglass, Ethereum net flows have been consistently negative, with a 24-hour net flow volume of -$182.86 million as more coins moved out of exchanges during this period. This trend has persisted over the last seven days, with six out of seven days showing negative net flows. This indicates that more Ethereum has been leaving exchanges for selling purposes, highlighting the prevalent buying sentiment among investors.
However, looking at a 15-day timeframe, investors seem to be leaning towards selling, with a positive $186.48 million in net flows. This could explain why the Ethereum price appears subdued despite Bitcoin reaching new all-time highs. The 30-day period also reflects larger deposit trends, with net flows rising to $483.54 million as Ethereum investors move more ETH into exchanges.
If Ethereum net flows continue to remain negative and potentially increase, it could signify a surge in buying pressure. Once buyers surpass sellers, the Ethereum price could see a rally. Crypto analyst Captain Faibik believes that reclaiming the 200-Day Simple Moving Average at $2,700 could pave the way for Ethereum to surpass $3,500 in the near future.
In conclusion, the fluctuating net flows of Ethereum provide valuable insights into investor sentiment and potential price movements. Keeping a close eye on these trends could offer valuable cues for traders and investors navigating the volatile cryptocurrency market.