Ethereum 7-day MA Exchange Inflows Have Gone Down In Recent Weeks
As pointed out by an analyst in a CryptoQuant , the ETH price has been reversing up as the PoS merge comes near.The “exchange inflow” is an indicator that measures the total amount of Ethereum moving into wallets of all centralized exchanges.
On the other hand, low values of the indicator can suggest holders aren’t sending in many coins to exchanges at the moment. Depending on whether they are also withdrawing or not, this trend could be either bullish or neutral for the value of ETH.
The 7-day MA value of the metric seems to have been going down in recent days | Source:As you can see in the above graph, the Ethereum exchange inflows sharply rose up in June and hit a peak. The price simultaneously suffered a big hit due to the selloff. Following this surge, the indicator’s value started to observe a decline. Around when the ETH developers announced the 19th September date for the PoS merge, the coin’s price started making recovery as the inflows continued to trend down.
The chart also displays data for the “open interest,” another on-chain indicator that measures the amount of positions currently open in the derivatives market.
It looks like the ETH positions have recently seen some growth. An active futures market can result in higher volatility due to excess of leverage, and in this year so far, high open interest hasn’t been constructive for the crypto’s price.ETH Price
At the time of writing, Ethereum’s price floats around $1.7k, up 12% in the last week. Over the past month, the crypto has gained 56% in value.
The below chart shows the trend in the price of the coin over the last five days.Looks like the value of the crypto has moved sideways recently | Source:
Featured image from Bastian Riccardi on Unsplash.com, charts from TradingView.com, CryptoQuant.com