On-chain data shows that around 800,000 ETH has exited the wallets of crypto exchange Gemini, which is a potentially bullish sign for Ethereum.
Crypto Exchange Gemini monitors outflows of 800k ETH
As pointed out by an analyst at CryptoQuant MailEthereum’s exchange reserve has fallen to its lowest level since 2018.
The “All stock exchangesIt is an indicator that measures the total amount of Ethereum currently stored in the wallets of all central exchanges.
When the value of this measure decreases, it means that the number of currencies on the exchanges decreases. Such a trend, when prolonged, could be a sign of accumulation from investors, and thus could be bullish for the price of the cryptocurrency.
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On the other hand, an increase in reserve indicates that users are depositing their coins at the moment. Since investors usually turn to exchanges for selling purposes, this kind of trend could have bearish consequences for ETH.
Now, here is a chart showing the trend in the reserve of all exchanges in Ethereum over the past two months:
The value of the indicator seems to have plummeted down over the past 24 hours | Source: CryptoQuant
As you can see in the chart above, the Ethereum exchange reserve has noticed a crash in the last day as a large number of coins were withdrawn.
The chart also includes data on “netflow“which tells us how much ETH is entering or leaving exchange wallets (or more simply, it measures changes in exchange reserves). Its value is calculated by taking the difference between inflows and outflows.
This indicator showed a significant negative rise recently, which is a logical trend given the decline in the exchange reserves.
The volumes indicate that these withdrawals were made on the crypto exchange Gemini and amounted to about 800 thousand ETH.
Gemini is known to be used by whales. In the past, remittances to and from the stock exchange had a noticeable impact on the market.
As such, such a large number of coins exiting the exchange could mean that the near-term outlook for Ethereum could be bullish.
ETH . price
At the time of writing this report, Ethereum price It is floating around $1.6K, up 13% in the past seven days. Over the past month, the value of the cryptocurrency has gained 45%.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has been moving sideways during the last few days | Source: ETHUSD on TradingView
Featured image from Bastian Riccardi on Unsplash.com, charts from TradingView.com, CryptoQuant.com