– Ethereum net exchange deposits have hit a five-month peak, recording up to 127,183 ETH flowing into exchanges.
– A positive reading on the Netflows reading is bullish for the altcoin, suggesting traders are buying more than they are selling.
– The last time ETH recorded a higher number was in May at 323,260.
– Steered by the broader market rally, the second-largest crypto by market capitalization could finally make its way to $2,000.
Ethereum (ETH) price was in a consolidation phase for around two months, trapped between $1,748 and $1,591 as its
correlation to Bitcoin (BTC) price drew towards the negative.Optimism, or a lack thereof, for exchange-traded funds (ETF) for either assets was the main factor that inspired the wedge as institution players such as Ark Invest pushed to see which product the US Securities Exchange Commission (SEC) would approve first.
Also Read:
Ethereum price outperforms Bitcoin on speculation that SEC may approve ETH futures ETF sooner than BTC ETF
Ethereum netflows hit a five-month peak
Ethereum (ETH) Netflows have hit a five-month peak, with up to 127,183 ETH flowing into exchanges.This is worth approximately $233,380,805 at current rates.The metric shows the difference between tokens entering an exchange minus those leaving exchanges, or rather, the net increase or decrease in exchange’s holdings over time.
The number can either be negative or positive, depending on its position relative to the mean.When it is positive, it is bullish, showing traders are buying more than they are selling.On the other hand, a negative reading on the Netflows metric shows there is more selling than buying, thus favoring the downside.
ETH Netflows
Ethereum FAQs
What is Ethereum?
Ethereum is a decentralized open-source blockchain with smart contracts functionality.Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization.The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
What blockchain technology does Ethereum use?
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority.
To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts.A smart contract is basically a code that can be verified and allows inter-user transactions.
What is staking?
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them.It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens.For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Why did Ethereum shift from Proof-of-Work to Proof-of-Stake?
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second.
With PoS, there are less entry barriers for miners considering the reduced energy demands.
Ethereum price outlook with positive netflows for ETH on exchanges
Ethereum (ETH) price is trading with a bullish bias after a 20% climb beginning in mid-October, before a rejection from the supply zone extending from $1,861 to $2,004.Noteworthy, a supply zone is an area on the chart where the price is likely to reverse due to strong opposing force.
It represents an area where there is a significant concentration of selling pressure.
Countered by selling pressure from this supply barrier, Ethereum price corrected around 3% to the current price of $1,798.Nevertheless, momentum remains strong, with the Relative Strength Index (RSI) still above 50 and the Awesome Oscillator (AO) comfortable in the positive zone with green histogram bars.
This outlook, coupled with the fact that the broader market is in a bullish wave, suggests the uptrend for Ethereum price is still plausible.
To confirm a solid move north, however, the largest altcoin by market capitalization must record a daily candlestick close above the midline of the supply zone at $1,935.A break and close above this level could set the tone for ETH to stretch to the $2,000 psychological level.
In a highly bullish case, the gains could extend for Ethereum price to flip the supply zone into a bullish barrier, tagging the $2,029 range high, 13% above current value, and levels last tested on April 19.
ETH/USDT 1-day chart
Ethereum on-chain metrics support bullish outlook
Behavior analytics platform Santiment supports the bullish
outlook for Ethereum price, with the Market Value to Realized Value (MVRV) showing that Ethereum price is still not in the danger zone where a correction would be imminent.This means there is still more room to the upside.
The supply of Tether (
USDT) stablecoin is also showing a significant ascent, indicating capital inflow as investors look to buy ETH.Further, the number of whale transactions moving more than 100,000 USD worth of Ether is increasing, with the surge pointing to significant engagement for Ethereum among major players and influential investors.
ETH Santiment
On the flip side, increased selling pressure, and therefore rejection from the supply zone could send Ethereum price further south to lose the $1,748 support, and potentially dip to the zone extending from $1,666 to $1,733.A break and close below its midline at the $1,700 psychological level would confirm a continuation of the downtrend, with ETH likely to test the $1,591 support flow, or worse, extend to the $1,536 swing low.
Information on these pages contains forward-looking statements that involve risks and uncertainties.
Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Investors realizing profits following 32% rally might send Bitcoin price to $30,000
Bitcoin price rally served as a motivation for people to jump in to invest in the cryptocurrency.However, with investors selling for profits, macro conditions opposing optimistic outlooks and the market cooling down, a decline does not seem too far-fetched.
More Bitcoin News
SBF Trial Endgame: Jury deliberations begin as Sam Bankman-Fried’s court case nears its end
Sam Bankman-Fried’s (SBF) multiple counts of charges in various categories – including fraud against FTX customers, fraud against FTX investors, fraud against Alameda’s lenders, conspiracy to commit money laundering, and conspiracy to commit securities fraud – have brought to light many discoveries, with the previous session giving both desks [defendant and prosecutor] a chance to give their closing arguments.
More Cryptocurrencies News
Arbitrum price aims 30% rally after breakout from a double bottom pattern
Arbitrum (ARB) price action beginning August through October has culminated in a double-bottom technical formation, coming at a time when the broader market is bullish, led by the king of cryptocurrency, Bitcoin (BTC).
More Arbitrum News
ProShares announces launch of short Ether-linked ETF
ProShares, a major issuer of exchange-traded funds (ETF), announced the launch of the short Ether-linked ETF on Nov.ProShares’s new Short Ether Strategy ETF is set to start trading on the New York Stock Exchange’s Arca under the ticker symbol SETH and is designed to provide investors with an opportunity to profit from the volatility of Ether’s (ETH $1,811) price.
More Crypto News
Bitcoin: To buy BTC dips or book profits?
Bitcoin (BTC) price has maintained an uptrend since early 2023.
Although the bulls fumbled in September, they are back on track.
While a further ascent is likely, BTC needs tailwinds, which may or may not come in the form of an ETF approval.On the contrary, the recent rally seems toppy and is likely to trigger a correction.
Read full analysis.
