On-chain data shows derivatives exchanges have just received large Ethereum deposits, something that could lead to volatility in ETH’s price.
Ethereum Exchange Netflow Has Seen A Sharp Positive Spike Recently
As explained by an analyst in a CryptoQuant Quicktake post, the Exchange Netflow for ETH has registered a large spike recently. The “Exchange Netflow” here refers to an on-chain indicator that keeps track of the net amount of ETH moving into or out of the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the investors are depositing a net number of tokens to these platforms. How these transactions affect ETH depends on the exchange to which the holders are moving coins.
In the case of spot exchanges, investors usually make deposits whenever they want to sell, so positive exchange netflows to platforms of this type can lead to a bearish outcome.
For derivatives exchanges, which are relevant platforms in the current discussion, the relationship with the price doesn’t tend to be so simple. Holders transfer their coins to these exchanges to open up fresh positions on the derivatives market.
As new positions generally accompany some leverage, the overall risk in the sector could be assumed to go up when investors deposit to derivatives exchanges. This can lead to more volatility for the ETH price.
A negative Exchange Netflow is usually bullish no matter the platforms involved, as it implies the investors are moving their coins to self-custodial wallets, potentially because they plan to hold into the long term.
Now, here is a chart that shows the trend in the Ethereum Exchange Netflow for the derivatives platforms over the last few weeks:
As displayed in the above graph, the Ethereum Exchange Netflow has seen a large spike into positive territory recently, which suggests the investors have just made large net deposits to the derivatives platforms.
The holders have transferred about 82,000 ETH to these exchanges with this net inflow spree. As mentioned earlier, this trend can lead to higher volatility for ETH.
It’s hard to say which direction any emerging volatility might take the cryptocurrency in, as other positive spikes in the last couple of months have proven to be a mixed bag.
Given that the latest spike has coincided with a plunge in Ethereum’s price, though, a lot of these may be short positions predicting a further decline. If so, a swing to the upside could lead to liquidating these positions, which would add fuel to the rally.
ETH Price
At the time of writing, Ethereum is trading at around $2,400, down almost 7% over the last week.
Link slot gacor memiliki aplikasi terbaik slot gacor hari ini di Indonesia, dengan kapasitas server terbesar yang memiliki puluhan ribu member aktif
Hmm it appears like your blog ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any tips for newbie blog writers? I’d definitely appreciate it.
After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.
whoah this blog is great i love studying your articles. Keep up the good work! You recognize, many persons are looking around for this info, you can aid them greatly.
Hello There. I discovered your blog the usage of msn. That is a very smartly written article. I will make sure to bookmark it and come back to learn extra of your useful info. Thank you for the post. I’ll definitely comeback.
I am impressed with this website , real I am a fan.
cost cheap clomid online can you get cheap clomiphene prices clomiphene risks can you buy clomid without a prescription can you get cheap clomid prices can i order cheap clomiphene prices how to buy cheap clomiphene withou
Palatable blog you be undergoing here.. It’s severely to espy strong quality article like yours these days. I honestly respect individuals like you! Take mindfulness!!
This is a question which is virtually to my heart… Numberless thanks! Unerringly where can I find the contact details an eye to questions?
buy zithromax 250mg for sale – tetracycline 250mg cheap buy metronidazole generic
buy rybelsus 14 mg sale – buy periactin 4 mg for sale purchase periactin without prescription
buy generic motilium 10mg – generic domperidone 10mg purchase flexeril pills
inderal 20mg canada – propranolol brand order methotrexate 10mg online cheap
I have not checked in here for some time since I thought it was getting boring, but the last few posts are good quality so I guess I¦ll add you back to my daily bloglist. You deserve it my friend 🙂
buy zithromax 250mg – purchase tinidazole sale nebivolol 20mg cheap