Ethereum exchange inflows had been on the high side for the better part of the past week. They averaged above $1 billion each day giving credence to the sell-off trend that has been experienced in the market. However, it seems there is a turn in the tide coming. As the weekend draws to a close, exchange inflows have been on the decline. This signals that the sellers are entering into a cool-off period that could potentially alter the price movement.
Inflows Fall Below $1 Billion
This week had opened up with alarming inflows into exchanges. Although the outflows had been enough to offset this, the rate at which investors were moving their Ethereum into exchanges was enough to be a cause of alarm. At its peak, Ethereum had seen $5.2 billion flowing into exchanges in a single day, rivaling even that of bitcoin.
Related Reading | Experts Say Ethereum Will Grow 100% To Hit $5,783 By Year-End
This trend would continue for the next couple of days where inflows had been lower than this peak number but remained above the $1 billion mark. That is until the midweek trading market where exchange inflows had slowed significantly and finally dropped below $1 billion.
In the past 24 hours, the amount of ETH flowing into exchanges had dropped to $880 million. This signals that sellers are now taking a break from flowing the market with coins.
Daily On-Chain Exchange Flow#Bitcoin $BTC $1.5B in $1.6B out Net flow: -$112.5M#Ethereum $ETH $880.5M in $781.0M out Net flow: +$99.5M#Tether (ERC20) $USDT $663.4M in $641.6M out Net flow: +$21.8Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) May 5, 2022
Nevertheless, the massive inflows had been offset by outflows. The accumulation frenzy among investors was enough to stall sellers who were trying to pull down the price, although not for the last 24 hours as outflows had been lower by inflows by $99.5 million.
Will Ethereum Price Follow?
Ahead of the opening of the trading day on Thursday, Ethereum’s price has not been doing well on the charts. It continues to suffer dips that have put it close to testing the $2,900 once more. It is following the general trend of the crypto market but the digital asset on its own is not doing too well according to indicators.
ETH price holding above $2,900 | Source: ETHUSD on TradingView.com
One of the scenarios where Ethereum continues to fall short is on the short-term trend. It is still trading below the 50-day moving average, an important point to hold if there is to be any bullish trend for the short term. The current price does not fall below this range by a large margin but is still enough to question if there is enough momentum for a recovery in the coming days.
Related Reading | Institutional Investors Exit Market As Crypto Declines, New Report Reveals
It is also important to note that the next significant support level for the digital asset lies at $2,824. This means that if bears are able to beat it down past $2,900 this morning, then further dips are expected before the cryptocurrency may be able to find adequate support.
On the flip side of this, the first major resistance point now sits at $3,015. However, as it has proven in the last couple of days, reaching the $3,000 is a harder sell than falling to $2,800.
Featured image from Token Information, chart from TradingView.com