1.2M Ethereum Worth $2.2B Moved To Exchanges As ETH Gave Up Last Week Profits

Ethereum Is Being Moved Back To Exchanges As ETH And BTC Loose Profits.

A new report by Santiment reveals that above 1.2M Ethereum worth more than $2 has been transferred to crypto exchanges over the last week.

This appears to be a sharp turn-around after a long period of ETH moving out of exchanges, a trend that started back in 2020. Santiment is a firm focused on crypto metrics and on-chain analysis.

? $2.21B worth of #Ethereum has moved back to exchanges over the past week after a long-term exodus of coins moving off of exchanges, dating back to August of 2020. This is the most sustained upswing in $ETH being moved back to exchanges since May, 2021. https://t.co/EPKbgVKxyT pic.twitter.com/UmuDg2wnEv

— Santiment (@santimentfeed) June 2, 2022

Early in the week, the market seemed to have gained some momentum, but the current slump suggests that we’re still in a bear market. The increased transfer of ETH into exchanges suggests that investors want to sell off their stash, and this would further fuel bearish sentiments.

According to a report by Santiment, ETH, along with other cryptos, appears to have entered a correction period after doing very well at the beginning of the year. As of now, ETH records a 50% loss on the year. This is coupled with a loss in market dominance from 20% in 2021 to 18% in 2022.

Recent Coin shares report suggests that “institutional investors are increasing allocation to DOT, ADA, and XRP at the expense of Ethereum.” This means that institutional investors are losing interest in ETH and moving their acquisitions from ETH to other altcoins, a threatening indication for the second largest crypto.

Cryptos Still Linked To SP500?

On the other hand, ETH and BTC seem to be losing out on profits. The gains made over the weekend have been clawed back. It appears that this slump has been influenced by Wednesday’s loss experienced in the SP500 market.

For years, the crypto market, especially Bitcoin, has been trying to decouple from the traditional markets. More often than not, Bitcoin and other cryptos have held up even as other markets suffered. This has further propagated the narrative that cryptos are a safe haven for the preservation of value when inflation hits the traditional financial systems.

However, it seems now that cryptos haven’t completely decoupled from the SP500. The current effects are evidence of that. Still, the crypto market is resilient. While BTC and ETH have experienced a drawback, it’s just margins that can be recovered quickly. Bitcoin has lost 5.6% to trade at $29.8 currently. ETH has lost by 6% to trade at $1,815 currently.

A separate statement by Santiment suggests that while cryptos like ETH have experienced a sharp increase in transfers to exchanges, the risk factor has been increasing. The profitability of both ETH and BTC has been dropping over the last month, reaching the highest in 30 days after Wednesday’s SP500 effect.

? #Bitcoin and #Ethereum gave up the profits that it had been enjoying since the weekend after the #SP500 wobbled to a loss Wednesday. The “profitability line” was crossed for our 30-day MVRV metric, indicating that risk had temporarily jumped higher. https://t.co/n0ZvUCngZX pic.twitter.com/ocbKC2N7G3

— Santiment (@santimentfeed) June 1, 2022

However, the current market dynamics that show a level of stagnation may be an indication of a crypto winter at the onset, and this is interesting considering that investors are still moving ETH into exchanges. At the moment, it’s still not clear how this dynamic will affect the market or whether it will go on.

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