On-chain data shows that the Coinbase crypto exchange withdrew 400,000 Ethereum yesterday. This could be a sign of activity from institutional investors and prove bullish for the coin.
Coinbase observes an outflow of 400,000 ETH
As can be seen from a CryptoQuant article, about 400,000 ETH (1.5 billion at the current exchange rate) were withdrawn from the crypto exchange Coinbase yesterday.
The indicator used here is the Ethereum outflow, which shows the total number of coins leaving the exchange’s wallets.
If the metric shows a big increase, it means that a lot of ETH has been pulled from the exchange. Investors typically take out a lot of coins either to hold or sell through OTC shops.
Constant outflows can therefore mean that there is buying pressure in the market and investors are optimistic about Ethereum.
This is what the chart for the indicator for the Coinbase crypto exchange looks like:
The ETH outflow showed a strong increase yesterday | Source: CryptoQaunt
As the graph above shows, the Coinbase crypto exchange saw a massive 400,000 Ethereum surge in outflows yesterday.
Such large outflows can be a sign of activity from institutional investors as ordinary holders certainly don’t have that many coins to move around.
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Institutional investors who are bullish about ETH can mean huge things for crypto. If ETH has to move up to the next level, a lot of money has to be pumped into it, and this usually means whales, like institutional investors, have to get involved.
Since these outflows are already signaling that institutional investors are taking their coins out of the exchanges in order to perhaps hold them, the outlook at ETH looks optimistic.
At the time of writing, ETH’s price is hovering around 59.9k, up 9% over the past seven days. Over the past thirty days, crypto has amassed 25% in profits.
The following graphic shows the price development of the coin over the last five days:
The price of ETH is taking a boost and is approaching the $ 4,000 mark | Source: ETHUSD on TradingView
ETH has taken a big boost in the past few days as the coin is now nearing a test of the $ 4,000 mark. It is currently unclear whether ETH can maintain this momentum and reach a new all-time high (ATH) soon, or whether it will stall again.
Related reading | TA: Ethereum follows Bitcoin why ETH could rise towards $ 4000
With outflow guidance, the general sentiment seems bullish and institutional investors who get involved can help with the big price hikes crypto needs to break key levels of resistance.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com