This chart shows the #Ethereum exchange flows and the total balance of ETH$ETH on exchanges.

๐Ÿ”น Key Observations:

1. Increase in incoming ETH flows (purple bars) in late January โ€“ early February: This could be due to traders taking profits or anticipating volatility-inducing events.

2. High outgoing #ETH flows (blue bars) in recent weeks: This suggests that investors are accumulating ETH, reducing exchange liquidity.

3. ETH balance on exchanges (yellow line) is declining: This can be a bullish signal, as a lower exchange balance means less selling pressure.

๐Ÿ“‰ What does this mean?

- A decreasing $ETH

balance on exchanges is often interpreted as a bullish signal since investors are moving assets to wallets, expecting price appreciation.

- If incoming flows (purple) increase again, it could indicate potential selling pressure.

Overall, the current decline in #ETH exchange balances suggests a potentially positive trend for Ethereumโ€™s price. ๐Ÿš€