Ethereum exchange flows have been up for the most part of the past week. It has averaged over $1 billion each day which gives credence to the selling trend that the market has seen. However, it looks like a turn of the tide is coming. As the week comes to a close, exchange inflows have been on the decline. This indicates that sellers are entering into a cooling off period that could alter price action.
Inflows drop to less than a billion dollars
This week started with alarming flows to the stock exchanges. Although the outflows were enough to offset this, the rate at which investors moved Ethereum to exchanges was enough to be cause for concern. At its peak, Ethereum saw $5.2 billion flow into exchanges in a single day, rivaling even bitcoin.
Related reading | Experts say Ethereum will grow by 100% to $5,783 by the end of the year
This trend will continue over the next couple of days as inflows were below this peak number but remained above the billion dollar mark. It was until the midweek trading market that exchange flows slowed dramatically and finally dropped below $1 billion.
In the last 24 hours, the amount of ETH flowing into the exchanges has fallen to $880 million. This indicates that sellers are now taking a breather from the influx of coins in the market.
The daily flow of exchange on the chain# bitcoin BTC dollars
➡️ $1.5 billion in
$1.6 billion out of
📉 Net Flow: $112.5 Million# Ethereum ETH dollar
➡️ $880.5 million in
⬅️ $781.0 million out of
📈 Net Flow: +99.5 Million Dollars#Rope (ERC20) USDT . dollars
➡️ $663.4 Million in
⬅️ $641.6 million out of
📈 Net Flow: + $21.8 Millionhttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) May 5 2022
However, the massive outflows have been met with outflows. The frenzy of backlog among investors was enough to stall sellers who were trying to bring the price down, although it wasn’t over the past 24 hours where outflows were lower due to inflows of $99.5 million.
Will Ethereum price follow?
Before the opening of the trading day on Thursday, the price of Ethereum was not doing very well on the charts. It is still suffering from the dips that brought it close to testing $2900 again. It is following the general trend of the crypto market but the digital asset on its own is not doing well according to the indicators.
ETH price holding above $2,900 | Source: ETHUSD on TradingView.com
One of the scenarios in which Ethereum continues to short is the short-term trend. It is still trading below the 50-day moving average, which is an important point to maintain if there is any short-term uptrend. The current price is not falling from that range by a large margin but it is still enough to question whether there is enough momentum for a recovery in the coming days.
It is also important to note that the next major support level for the digital asset is at $2,824. This means that if the bears manage to beat it above $2,900 this morning, further declines are expected before the cryptocurrency can find adequate support.
On the other side of this, the first major resistance point is now located at $3,015. However, as the past couple of days have proven, it is a tougher sell to reach $3000 than a dip to $2800.
Featured image from Token Information, chart from TradingView.com