Ethereum's net inflow has been basically negative over the past week, and continuing this trend suggests that the momentum for price increases is strengthening. This data reflects the potential buying and selling volume at that time, as well as investors' current views on this digital asset.
Fluctuation of Ethereum's net flow
Net flow refers to the difference in the number of tokens entering or leaving cryptocurrency exchanges over a given period. If the net flow is positive, it means that more ETH is flowing into cryptocurrency exchanges, which may indicate that investors are taking profits as prices rise. However, if the net flow is negative, it indicates that the number of tokens flowing out of the exchanges exceeds the number flowing into them. Therefore, this may suggest that buying pressure is higher than selling pressure.
Currently, Coinglass data shows that Ethereum's net flow has been leaning towards negative for some time. The 24-hour net flow shows -182.86 million dollars, as more tokens have been withdrawn from cryptocurrency exchanges during this period.
This situation has persisted, with negative net flow for six out of the past seven days. This means that the amount of ETH flowing out of cryptocurrency exchanges exceeds the amount of ETH being sold into the exchanges. Therefore, buying remains the current mainstream. Over these 7 days, Ethereum's net flow was -140 million dollars.
However, looking back at the earlier 15-day timeframe, investors still tend to sell. During this period, there was also a net inflow of 186.48 million dollars, which may explain why, despite Bitcoin reaching an all-time high, Ethereum's price seems to be suppressed.
The situation over the 30-day period is similar, with a stronger deposit trend. Overall, Ethereum investors transferred more ETH to cryptocurrency exchanges, leading to a decline in net inflow to 483.54 million dollars during this period.
What will happen to the price if the net flow remains negative?
If Ethereum's net flow continues to remain negative, or even increases, it indicates rising buying pressure. Once buyers can bid higher than sellers, the price of Ethereum may rise again.
As for how high Ethereum's price may rise, cryptocurrency analyst Captain Faibik explains that bulls are still struggling to reclaim the 200-day simple moving average level of 27,000 dollars. Now, if bulls can break through this level, the analyst expects the price to exceed 3,500 dollars in the short term.
