Tue, 29 Mar 2022 01:00:57 +0000
Ethereum has now cemented its position above the hard-won $3,000 level. This signals another bull rally for the digital asset given how the market has responded to its recent surge. More money is coming into the digital asset daily as investors clamor to take part in the gains. This is evidenced by the exchange inflows and outflows, which show a clear buy and accumulate trend on the part of these investors.
For the past week, Ethereum, like its counterpart Bitcoin, has been on an outflow trend. This trend saw more of the digital asset leaving exchanges than have been coming in. Glassnode Alerts makes daily reports of exchange inflows and outflows, showing that Ethereum investors are choosing to remove their coins off exchanges, presumably to safer, personal wallets.
In the one-week time frame, daily exchange outflows had consistently been above that of inflows. In total, there was a total of $5 billion worth of Ethereum that were moved into exchanges in one week. Compared to this is outflows, which came out at $6 billion in total leaving exchanges. This translates to 20% more ETH leaving exchanges than those being moved in to be too sold.
🚨 Weekly On-Chain Exchange Flow 🚨#Bitcoin $BTC
➡️ $7.3B in
⬅️ $7.7B out
📉 Net flow: -$474.3M#Ethereum $ETH
➡️ $5.0B in
⬅️ $6.0B out
📉 Net flow: -$1.1B#Tether (ERC20) $USDT
➡️ $5.6B in
⬅️ $4.9B out
📈 Net flow: +$722.7Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) March 28, 2022
It shows that investors have been accumulating their tokens over the past week. However, there has been a break in this streak recently. As markets open on Monday, ETH has seen this accumulation trend turn.
Glassnode Alerts reported in the early hours of Monday that exchange inflows had topped that out of outflows. On the daily chart, exchanges saw $441 million worth of ETH flow in, while only $418 million of ETH flowed out, recording a net flow of +$22.8 million.
There is no telling if this is the new trend as it is too early to tell. However, this makes sense given that investors who have been holding through the period of consolidation would want to realize some profits given that the price is up significantly.
As expected, Ethereum has had one of the best runs out the weekend rally. The digital asset which had been struggling to hold above $3,000 finally got the boost it needs to shed the impacts of the bears. This pushed it high with a soft landing above $3,300.
ETH breaks above $3,300 | Source: ETHUSD on TradingView.com
With this recent move, trends for the digital asset in the short term have all turned bullish. Buy pressure has cranked up to 92% on investors as the cryptocurrency prepares to test the next significant resistance which lies above $3,500.
Related Reading | TA: Ethereum Gains Traction, A Strengthening Case For More Gains
At the time of this writing, Ethereum is trading $3,324 with a market cap of almost $400 billion.
Featured image from Admiral Markets, chart from TradingView.com