Ethereum Sees Negative Net Flows as Bulls Aim for $3,500
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Ethereum has experienced predominantly negative net flows over the past week, indicating a potential buildup of bullish sentiment for the asset’s price. These metrics reflect the buying and selling behaviors of investors regarding this digital currency.
Fluctuation of Ethereum Net Flows
Net flows signify the balance between coins entering and exiting cryptocurrency exchanges within a specified timeframe. Positive net flows indicate more ETH is being deposited, which could suggest that investors are capitalizing on rising prices. Conversely, negative net flows suggest that more coins are being withdrawn than deposited, hinting at stronger buying activity than selling.
Further Insights
According to current observations, net flows for Ethereum have leaned negative for some time. Recent data reveals a 24-hour net flow totaling -$182.86 million, reflecting a greater outflow of ETH from exchanges.
This trend has continued, with six of the last seven days showing negative net flows, indicating a surplus of ETH withdrawals compared to deposits aimed at selling. This suggests sustained buying interest. Within this week, Ethereum’s net flows reflect a figure of -$140 million.
In a broader look at the past 15 days, selling has still dominated, with a positive net flow of $186.48 million, which may account for the subdued Ethereum price despite Bitcoin’s surge to new highs.
The situation is similar over the past 30 days, where there has been a substantial trend of deposits. Overall, Ethereum investors have shifted more ETH to exchanges, resulting in net flows increasing to $483.54 million during this period.
Impact of Continued Negative Net Flows on Price
Should Ethereum’s net flows persist in the negative region and potentially amplify, it would indicate rising buying pressure. If buyers manage to surpass sellers, a rally in Ethereum’s price could commence.
Further Insights
Regarding potential price targets for Ethereum, crypto analyst Captain Faibik noted that bulls are currently challenged to reclaim the 200-Day Simple Moving Average situated at $27,000. If this level is breached, predictions indicate a price surge above $3,500 in the near future.
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