Buckle Up, Ethereum! Exchange Outflow Hints at Bullish Breakout

Yesterday, an unknown market participant transferred 6,400 Ethereum (ETH) to the Beacon depositor wallet. 

The Beacon Chain, responsible for validating new blocks on the Ethereum network, received this significant transfer. Bulls have kept bears at bay, suggesting that ETH might inch toward $3,500. Locking a massive number of coins could reduce selling pressure and help prevent ETH from falling below $3,000.

An increase in this metric indicates that holders are staking at least 32 ETH in anticipation of rewards. However, for the price to rise, the number of coins on exchanges must decrease. To determine if this is the case, AMBCrypto assessed Ethereum’s exchange inflow and outflow.

Exchange inflow measures the amount of crypto sent to exchanges from external sources, while exchange outflow tracks the number of ETH withdrawn.

Interestingly, this surge is occurring as the launch of the spot Ethereum ETF approaches. This decline in circulation suggests that the Ethereum community is optimistic about the upcoming event. 

If exchange inflow exceeds outflow, the price is at risk of correction. Conversely, an increase in outflow supports the potential for price appreciation. 

According to Santiment, ETH’s exchange inflow was 26,500, while the outflow was 37,500. Given this difference, there is a strong likelihood that ETH’s price could surge in the days or weeks following the official trading launch of the ETFs. 

Meanwhile, Benjamin Cowen, founder of Into The Cryptoverse, shared insights on potential price movements. 

Cowen suggested that ETH may start outperforming Bitcoin (BTC) by the fourth quarter of the year. Moreover, data from the IntoTheBlock indicated that Ethereum might not wait until then to perform well, particularly due to the state of the Bulls and Bears indicator.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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