The exchange netflow of Ether (ETH) over yesteryear few years highlights a behavior pattern among Ether whales that market analysts believe is performed to function the cost from the second-largest cryptocurrency.
The “exchange netflow” is definitely an indicator that measures the internet quantity of crypto entering or exiting wallets of centralized exchanges. The metric’s value is just calculated if you take the main difference between your exchange inflows and also the exchange outflows.
Data shared by among the pseudonymous traders of crypto analytic firm Cryptoquant signifies that ETH whales have consistently sent their holdings onto exchanges to boost the cost of ETH then sell it in a greater market cost.
The Ethereum exchange netflow data confirmed the behavior pattern among ETH whales and indicate it’s been persistent since 2020. The cost pump is frequently adopted by whales selling their holdings in an elevated market cost. The cost pump will be adopted with a correction as visible within the graph below.
The behavior pattern came like a surprise given an optimistic netflow or a boost in the amount of deposits on centralized exchanges is frequently considered a bearish signal since traders mostly send their holdings onto exchanges for selling.
The trader within their analysis noted the Ethereum exchange deposits elevated periodically during short-term or lengthy-term lows for that asset. The Ethereum netflow chart confirms the spike as a swap flows has frequently come at any given time once the cost of ETH was buying and selling at ‘abnormal’ amounts.
Related: Ethereum Merge spikes block creation having a faster average block time
Ethereum whales’ heavy deposits onto exchanges ongoing even just in the run-to the Merge, because the cost of ETH rallied before the key proof-of-stake transition. The cost of Ether dipped following the Merge despite numerous market pundits claiming otherwise, thus confirming the behavior pattern connected with Ether whale’s exchange deposits. However, the trader figured that exchange inflow doesn’t always rise before Ethereum prices rise.
