Ethereum worth $58M flows into exchanges – iI this why?

Journalist

Posted: November 29, 2023

• Around 29,000 ETH has been deposited into different exchanges in the past 48 hours.
• ETH remained in the $2,000 price range despite declines.

An increasing number of Ethereum [ETH] coins have been entering various exchanges over the last 48 hours, based on AMBCrypto’s analysis via Lookonchain.

Further analysis of these deposits showed that Cumberland and Amber collectively deposited 19,000 ETH, worth over $38 million. Additionally, Celsius and another whale address deposited 10,000 ETH, valued at around $20 million, into Binance [BNB] and OKX.

The data implied that these specific addresses executed these transactions to facilitate the sale of their ETH on these exchanges. Depending on the proportion of their contributions to the overall trade volume, it could influence the overall trajectory of ETH’s price.

Analyzing how Ethereum’s netflow has reacted

An examination of Ethereum’s netflow data on CryptoQuant showed a positive trend in the past 48 hours. This indicated that there had been a greater inflow of ETH compared to its outflow during this period.

At the close of trading on the 27th of November, the netflow was notably positive, recording over 27,000 ETH. As of this writing, the positive netflow persisted, with over 8,000 ETH. 

Source: CryptoQuant

Notably, this was the first positive netflow in the past five days. Also, it was the first consecutive day with a positive netflow in the recent days.

Supply continues to drop

AMBCrypto’s examination of Ethereum’s exchange supply on Santiment showed a consistent pattern, despite a recent increase in exchange inflow over the past 48 hours. The chart revealed that the Supply on Exchanges remained stable at around 10.51 million as of press time.

This number represented about 8.1% of ETH’s total supply.

Notably, despite the recent rise in exchange inflow, the most recent significant move reflected a decrease in supply.

Source: Santiment

Furthermore, recent data suggested an overall decline in the supply of Ethereum. This suggested a scenario where there were more holders than sellers, contributing to an overall reduction in the available ETH supply.

Such a trend could also have a positive impact on the price direction.

Sales volume impacts ETH

AMBCrypto’s analysis of ETH’s daily timeframe chart revealed a recent downtrend in price over the past few days. Specifically, there was a loss of over 3% in value within the last three days.

How much are 1,10,100 ETHs worth today?

As of this writing, Ethereum was trading at around $2015, experiencing a slight decline of less than 1% in value.

Source: TradingView

This decrease in value reflected the notable volume of sales observed in the market over the past couple of days.