Ethereum Exchange Outflows Reaches Four Year Lows But Is It Good?

Ethereum Exchange Outflows Reaches Four Year Lows But Is It Good?

2021-12-28 | Daniel Smith

Ethereum Exchange Outflows Reaches Four Year Lows But Is It Good?

As per Glassnode and WuBlockchain statistics, Ethereum exchange outflows have hit a four-year low, which may confound certain traders and investors because the outflow signal continues to be one of the primary means of assessing movements in the cryptocurrency space. Outflow Volume May Be Planing For Something As many on-chain and market experts point out, Outflow Volume is commonly cited as the primary sign of a bullish trend. With a minimal Outflow Volume, the market's selling force lessens, which has a direct influence on the asset's price. Additionally the Outflow Volume, traders employ exchange reserve measures that have a strong correlation with outflow volumes. However, in this example, Outflow Volume has declined dramatically, which some traders may interpret as a negative indicator, albeit this is not required. The low Outflow Volume could be attributed to the reality that Ethereum exchange reserves are insufficient, and the percentage of traders or investors keeping funds on exchanges has hit all-time lows. Outflow Volume will very probably decline till exchange reserves return to pre-pump levels if the bulk of traders and investors do not retain the bulk of their Ethereum security on exchange addresses. Ethereum’s Market Record With a rise of even more than 40% in the previous three months, Ethereum (ETH) stays another of the crypto industry's top performers. Because of its rather neutral behavior in the previous two weeks, Ethereum is becoming even more valued amongst investors following the massive drop in the crypto space. While the rest of the market's assets have dropped up to 30% of their value, Ethereum has had an 8% correction and is presently beneath $4,000 support. Ethereum Exchange Outflows Reaches Four Year Lows But Is It Good?

Ethereum Price Chart - Source: CoinMarketCap

Leave a comment

Your email address will not be published. Required fields are marked *

Top 7 cryptocurrency overview



Best trading tool for cryptocurrency

2022 Top cryptocurrency Price Prediction List