Ethereum has plunged below $1.3k today, but the decline may not be over quite just yet as on-chain data shows selling pressure continues to rise in the market.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the ETH derivative and spot exchange inflows are both still on the rise.<\/p>\n The \u201cexchange inflow<\/a>\u201d is an indicator that measures the total amount of Ethereum entering into the wallets of centralized exchanges.<\/p>\n There are two versions of this metric, the first notes the inflows specifically going to derivative exchanges, and the other registers only those transfers that are moving to spot exchanges.<\/p>\n Generally, a rise in the derivative inflows leads to higher volatility in the market, as it implies that new futures positions are opening up, and leverage is increasing.<\/p>\n Spikes in the spot inflows<\/a> can have direct bearish effects on the price of the crypto as investors usually deposit to these exchanges for selling purposes.<\/p>\n Now, here is a chart that shows the trend in both the Ethereum exchange inflow indicators (7-day moving averages) over the past year:<\/p>\n\n The 7-day MA values of the two metrics seem to have been pretty high in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Ethereum exchange inflows (both types) spiked up just before the crash shook the market.<\/p>\n In this latest drawdown in the price, the crypto has gone from $1.6k all the way down to just $1.2k over the last couple of days.<\/p>\n The main spark behind this crash seems to have been the battle between FTX and Binance, which has come to an end<\/a> with Binance moving to acquire FTX.<\/p>\n However, it looks like the inflows still haven\u2019t cooled off yet. Rather, the indicators seem to be actually climbing up even more.<\/p>\n This suggests that Ethereum is continuing to experience selling pressure, a sign that the current level may not be the bottom, and the crypto\u2019s value might observe further decline in the coming hours.<\/p>\n At the time of writing, Ethereum\u2019s price floats around $1.2k, down 21% in the last week. Over the past month, the crypto has dropped 8% in value.<\/p>\n Below is a chart that shows the trend in the price of the coin over the last five days.<\/p>\n\n Looks like the value of the crypto has been plunging down over the past day | Source: ETHUSD on TradingView<\/a> <\/p>\n Ethereum has plunged below $1.3k today, but the decline may not be over quite just yet as on-chain data shows selling pressure continues to rise in the market.<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the ETH derivative and spot exchange inflows are both still on the rise.<\/p>\n The \u201cexchange inflow<\/a>\u201d is an indicator that measures the total amount of Ethereum entering into the wallets of centralized exchanges.<\/p>\n There are two versions of this metric, the first notes the inflows specifically going to derivative exchanges, and the other registers only those transfers that are moving to spot exchanges.<\/p>\n Generally, a rise in the derivative inflows leads to higher volatility in the market, as it implies that new futures positions are opening up, and leverage is increasing.<\/p>\n Spikes in the spot inflows<\/a> can have direct bearish effects on the price of the crypto as investors usually deposit to these exchanges for selling purposes.<\/p>\n Now, here is a chart that shows the trend in both the Ethereum exchange inflow indicators (7-day moving averages) over the past year:<\/p>\n The 7-day MA values of the two metrics seem to have been pretty high in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Ethereum exchange inflows (both types) spiked up just before the crash shook the market.<\/p>\n In this latest drawdown in the price, the crypto has gone from $1.6k all the way down to just $1.2k over the last couple of days.<\/p>\n The main spark behind this crash seems to have been the battle between FTX and Binance, which has come to an end<\/a> with Binance moving to acquire FTX.<\/p>\n However, it looks like the inflows still haven\u2019t cooled off yet. Rather, the indicators seem to be actually climbing up even more.<\/p>\n This suggests that Ethereum is continuing to experience selling pressure, a sign that the current level may not be the bottom, and the crypto\u2019s value might observe further decline in the coming hours.<\/p>\n At the time of writing, Ethereum\u2019s price floats around $1.2k, down 21% in the last week. Over the past month, the crypto has dropped 8% in value.<\/p>\n Below is a chart that shows the trend in the price of the coin over the last five days.<\/p>\nETH Price<\/h2>\n
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"Ethereum Exchange Inflows Have Continued To Go Up During The Past Day<\/h2>\n
ETH Price<\/h2>\n