March Sees Nearly $1 Billion In Ethereum Netflow To Centralized Exchanges – What’s Happening?
March 23 2024 - 1:30PM
NEWSBTC
The price of Ethereum has not exactly lived up to its promise as
the month has gone on, despite a stellar start to the month. While
this bearish pressure has been widespread in the general
cryptocurrency market, regulation uncertainty has been an
additional concern for ETH, igniting a negative sentiment around
the “king of altcoins.” Interestingly, the latest on-chain
revelation shows a substantial amount of Ethereum has made its way
to exchanges so far in March, suggesting that investors might be
losing confidence in the long-term promise of the cryptocurrency.
Are Investors Losing Confidence In Ethereum? According to data from
CryptoQuant, more than $913 million has been recorded in net ETH
transfers to centralized exchanges so far in March. This on-chain
information was revealed via a quicktake post on the data analytics
platform. This net fund movement represents the largest volume of
Ethereum transferred to centralized exchanges in a single month
since June 2022. Even though March is still a week from being over,
this exchange inflow appears to be a complete deviation from the
pattern observed over the past few months. Chart showing total
monthly netflow of ETH on centralized exchanges | Sources:
CryptoQuant Related Reading: Dogecoin Whales Go On Massive Buying
Spree, Here’s How Much They’ve Bought As shown in the chart above,
October 2023 was the last time cryptocurrency exchanges witnessed a
positive net flow. It is worth noting that there was significant
movement of Ethereum tokens out of the centralized platforms in
subsequent months up until this month. Meanwhile, a separate data
point that supports the massive exodus of ETH to centralized
exchanges has come to light. Popular crypto analyst Ali Martinez
revealed on X nearly 420,000 Ethereum tokens (equivalent to $1.47
billion) have been transferred to cryptocurrency exchanges in the
past three weeks. The flow of large amounts of cryptocurrency to
centralized exchanges is often considered a bearish sign, as it can
be an indication that investors may be willing to sell their
assets. Ultimately, this can put downward pressure on the
cryptocurrency’s price. Substantial fund movements to trading
platforms could also represent a shift in investor sentiment. It
could be a sign that investors are losing faith in a particular
asset (ETH, in this case). Moreover, the recent regulatory headwind
surrounding Ethereum specifically accentuates this
hypothesis. According to the latest report, the United States
Securities and Exchange Commission is considering a probe to
classify the ETH token as a security. ETH Price As of this writing,
the Ethereum token is valued at $3,343, reflecting a 4% price
decline over the past /4 hours. According to data from CoinGecko,
ETH is down by 11% in the past week. Related Reading: Bernstein
Analysts Says Bitcoin Will Reach A New ATH By Year End, Here’s The
Target Ethereum loses the $3,400 level again on the daily timeframe
| Source: ETHUSDT chart on TradingView Featured image from
Unsplash, chart from TradingView
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