Well, well, well! Look who’s been hitting the gym and flexing those digital muscles. Ethereum has just smashed through the $2,400 barrier like a hot knife through butter.
Ethereum is Playing Hard to Get
In an intriguing post by CryptoQuant Quicktake (which sounds suspiciously like a superhero alter ego), they’ve spilled some juicy details about how Ethereum’s price has been playing footsie with something called ‘exchange netflow indicator’.
The “exchange netflow” isn’t as complicated as it sounds – it’s basically keeping tabs on whether more of our beloved Ether is entering or exiting wallets in centralized exchanges. It’s kind of like watching people enter and exit from your favorite nightclub – except less sweaty.
If there are more inflows than outflows (a positive value), then that means investors are depositing their tokens into these platforms faster than you can say “cryptocurrency”. This could be because they’re planning to sell them off which might not bode too well for Ethereum’s price tag.
On the flip side, if we have negative values popping up left right and center this suggests that holders are withdrawing their assets from these platforms at warp speed. In layman terms: They’re hoarding Ether for long-term gains which would naturally send its value skyrocketing!
A Picture Paints A Thousand Words…Or Just The Price Of Ethereum
The value of the metric seems to have been quite red in recent days | Source: CryptoQuant
As you can see from this graph (which looks like a toddler’s attempt at finger painting), Ethereum’s price has been on an overall upward trend. This is because the 14-day EMA exchange netflow has mostly been chilling out in negative territory.
There have, however, been some spikes into positive land which usually means that Ether encounters resistance and these transfers add to selling pressure. But recently, our indicator friend here has turned as red as a tomato for over a week straight! This suggests investors are making more withdrawals than deposits – potentially indicating whale activity!
Ethereum Price Update
The latest newsflash is that Ethereum is tradingSponsored Product around $2,420 – up by more than 6% over the past week. Now if only my bank account could show such impressive growth…
Looks like the price of asset shot up over last few days|Source :ETHUSD on TradingView
A Word Of Caution:
This article should be taken with a pinch of salt or maybe even two! It doesn’t represent NewsBTC’s opinions about whether you should buy your grandma an Ether token for her birthday or sell all your assets and move to a deserted island. Investing is risky business, so do your homework before making any decisions and remember – don’t risk more than you can afford to lose!
Ethereum Breaks Above $2,400: This Metric Points To Further Upside