Key Insights
- Ethereum ETF registered the highest daily inflows this month at $55.7 million inflows on Friday.
- ETH whale inflows signal potential reversal with price dipping into oversold territory.
- ETH total value staked retreats to July levels, but exchange reserves extend decline despite sell pressure.
Ethereum ETF news predominantly leaned in favor of outflows this past week in line with heavy liquidity outflows that plagued the market.
However, Friday ETF data revealed a change of tune but could it be a sign of some relief ahead? November is on track to conclude as one of the most bearish months for Ethereum ETF flows.
The cryptocurrency just concluded another week characterized by heavy outflows. Ethereum ETFs recorded just over $500 million worth of net outflows in the last 5 days.
However, the Ethereum ETFs recorded roughly $55.7 million worth of inflows on Friday, which ended the previously continuous stream of outflows that lasted for 8 days.
Also, ETH’s RSI dropped as low as 27, which marked the first time that ETH price was oversold since April.
This oversold nature may have encouraged whales and institutions to buy back. However, ETH’s ability to sustain an upside will depend on whether demand will be strong enough to offset existing sell pressure.
Macro news may also be in favor. Recent reports revealed that the FED might execute a larger than expected rate cut.
An aggressive cut may reignite liquidity injection into the market, allowing ETH and other cryptocurrencies to possibly experience some bullish relief.
ETH TVL Outflows Escalate But Exchange Flows Extend Decline
The bearish market conditions since August have so far caused serious liquidity outflows from major blockchains including Ethereum.
This coincides with its aggressive TVL slide which symbolized confidence loss among investors.
For reference, Ethereum’s total value staked peaked above 36.11 million ETH in August, marking the highest value level in the last 12 months. It has since retreated to 35.9 million ETH.
The total value staked retreated to levels last seen before mid-July this year. This highlighted the extent of confidence erosion observed under recent market conditions.
One would expect a massive spike in Ethereum exchange liquidity especially considering the heavily bearish conditions lately, and extensive sell pressure. However, ETH exchange reserves painted a different picture.
ETH exchange inflows initially experienced a mid-month correction which was previously in line with sell pressure.
However, recent data showed that the cryptocurrency’s reserves on exchanges dropped from 15.66 million coins to 15.39 million coins.
Declining exchange reserves in the last 3 days could indicate that there was healthy accumulation despite the declining prices. This could make a bullish case for ETH price in the next few days if demand remains strong.