Ethereum's exchange inflows reach 11-month high; How can it affect ETH price?
As the cryptocurrency market begins to show signs of stability as Bitcoin (BTC) momentarily holds above the crucial $20,000 support level the second largest digital asset by market cap, Ethereum (ETH), has also seen its price rise significantly in the last week.
Despite the inflow into Ethereum’s market cap in the last week, the DeFi asset is also seeing substantial inflows onto crypto exchanges in tandem with the largest profit ratio since last August, according to data shared by behavior analysis platform Santiment on July 7.
Indeed, Ethereum saw a net of over 220,000 coins moving on to exchanges on July 6, the highest daily amount in 11 months based on the Ratio of daily on-chain transaction volume in profit to loss (ETH). As a result, of the enormous inflow, the platform warned:
“Thus far today, we’re seeing the largest ratio of ETH profit taking vs. loss transactions since April. Be cautious in these conditions.”
Ethereum price analysis
Besides the Ethereum exchange flow balance, the digital asset is currently trading at $1,220, up 7.53% in the last 24 hours and a further 18.92% over the previous week, taking the cryptocurrency’s total market worth to $148.2 billion, according to CoinMarketCap data.
Interestingly, Ali Martinez, a well-known crypto trading expert, noted on June 30 that:
“More than 200,000 ETH. worth over $200 million, has been sent to known crypto exchanges wallets over the past five days.”
The analyst felt a the time that Ethereum’s price may soon see a significant decline as a consequence of the influx of new funds into trading platforms and the ongoing bear market in cryptocurrency markets. The history of transactions at the time revealed that almost 468,000 addresses together own more than 7 million ETH and are now in the red.
However, Ethereum has moved in the opposite direction climbing $200 since June 30. Notably, Finbold pointed out on July 5 that:
“The next significant barrier to overcome is located close to the $1,080 zone. If the price manages to sustain a move higher while staying over the $1,120 resistance zone, a sizable uptrend may get underway.”
Finally, the community over at CoinMarketCap is forecasting that ETH will trade at an average price of $2,529 by July 31, 2022; whether the asset can reach such highs in just a month remains to be seen.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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