Ethereum’s foreign exchange reserves grow 5.1% in less than a week

  • Ethereum reserves on crypto exchanges have increased 5.1% since May 18
  • Such an influx of Ethereum suggests a sale by investors
  • The Ethereum has turned bearish in the short term
  • Ethereum has lost $ 2,000 of support and regaining it will be vital to returning to bullish territory
  • Ethereum still has the 200-day MA as support for around $ 1,500

Ethereum, held on crypto exchanges, saw a 5.1% increase in less than a week. This emerges from an analysis shared by the CryptoQuant team, which has also warned that such an inflow of ETH into the exchanges could be a short-term bearish signal as it implies selling by investors. They also shared the table below, which demonstrated Ethereum’s increase in crypto exchanges.

The net flow of Ethereum into the exchanges is still negative

However, the inflow of Ethereum into the crypto exchanges has not exceeded the outflow of ETH from the same platforms. According to data from Viewbase.com, the amount of Ethereum that left the exchange in the last week has exceeded the amount that is flowing into the same platforms. A screenshot of the net Ethereum flows in and out of the exchanges for the past week can be found below.

Ethereum's foreign exchange reserves grow 5.1% in less than a week 17

Ethereum still has the 200-day MA as support

Unlike Bitcoin, which lost its 200-day average as support, Ethereum is still trading above this crucial level (green), as shown in the graph below.

Ethereum's foreign exchange reserves grow 5.1% in less than a week 19

It can also be seen from the chart that the 200-day moving average is converging with the support of USD 1,500. Below that level is the $ 1,440 support from Ethereum’s all-time high for 2018.

In terms of indicators, it can be observed that all three – daily MACD, MFI and RSI – are in the oversold territory, pointing to a short-term reversal of Ethereum in the crypto markets.

As with all analyzes of altcoins like Ethereum, however, its fate in the crypto markets is tied to that of Bitcoin. Therefore, if the king of crypto continues to lose the support zone after the support zone, Ethereum will also follow a similar path to lower levels.

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