Ethereum shows deep negative net flows when foreign exchange reserves decline

Ethereum’s netflows appear to be negative on all exchanges right now as exchange reserves continue their downtrend.

Ethereum reserves in the downtrend

As can be seen from a CryptoQuant article, the ETH reserves are continuing a downward trend. The net flows of all exchanges are also very red.

The Ethereum All Exchanges Reserve is an indicator that shows the total number of coins that are held in the wallets of all exchanges.

If the metric rises in value, it means that more investors have their ETH on exchanges to sell, buy altcoins or margin trade.

This is what the Ethereum-Alle-Börse-Reserve currently looks like:

ETH all stock exchange reserves continue to decline

The above graph makes it clear that the Ethereum All Exchange Reserve has continued its downward trend for the past few months.

The recent downward curve appears to be fairly sharp. A drop in foreign exchange reserves should keep the market from having a lot of selling pressure. If this steep downtrend continues, the price could rise.

The other indicator of interest is the net flow of all Ethereum exchanges. The net inflow is defined as the difference between the currency inflows and the currency outflows.

The Exchange inflows are the value of ETH sent from personal addresses in Exchange wallets. While drains are the opposite.

Related reading | Ethereum whales keep buying, top 10 addresses now own 20% of all ETH

All exchanges netflow = inflows – outflows

Below is a graph showing the latest trends in the value of ETH netflow from all exchanges.

Ethereum netflow

The ETH netflow of all exchanges shows deep red shows

As the graph shows, the last few days have shown a negative net flow on all exchanges for Ethereum. This means that more investors are sending their ETH from exchange wallets to personal wallets than the other way around.

Related reading | TA: Ethereum (ETH) recovery faces hurdles as to why bears are in control

When the value of the indicator rises, it means that investors want to sell their crypto. On the other hand, a decline like the one that’s just happening should mean there isn’t a lot of selling pressure.

ETH price

Ethereum is down more than 12% in the past week as the value of the crypto fluctuates just under $ 1.9,000. Compared to a month ago, the price is 27% lower.

This is what the price chart looks like for the past 6 months:

Ethereum price chart

Ethereum price seems to be trending down | Source: ETHUSD on TradingView

The value of ETH has been falling for some time, with no signs of recovery. It is unclear whether the market is currently bearish or not. If one can orientate oneself on the net flows of the stock market, a deep negative trend could mean that the price could go up soon.

Featured image from, charts from, CryptoQuant

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