Ethereum Bullish Signal: 800k ETH Exits From Gemini
July 22 2022 - 3:00PM
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On-chain data shows around 800k ETH has exited wallets of the
crypto exchange Gemini, a sign that could prove to be bullish for
Ethereum. Crypto Exchange Gemini Observes outflows Of 800k ETH As
pointed out by an analyst in a CryptoQuant post, the Ethereum
exchange reserve has plunged down to lows not seen since 2018. The
“all exchanges reserve” is an indicator that measures the total
amount of Ethereum currently stored on wallets of all centralized
exchanges. When the value of this metric goes down, it means the
number of coins on exchanges are going down. Such a trend, when
prolonged, can be a sign of accumulation from investors, and hence
can be bullish for the price of the crypto. Related Reading
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How Long? On the other hand, an increase in the reserve implies
users are depositing their coins right now. Since investors usually
transfer to exchanges for selling purposes, this kind of trend can
have bearish consequences for ETH. Now, here is a chart that shows
the trend in the Ethereum all exchanges reserve over the last
couple of months: The value of the indicator seems to have
plummeted down over the past 24 hours | Source: CryptoQuant As you
can see in the above graph, the Ethereum exchange reserve has
observed a crash in the last day as a large number of coins have
been withdrawn. The chart also includes data for the “netflow,”
which tells us about the amount of ETH entering or exiting exchange
wallets (or more simply, it measures the changes in the exchange
reserve). Its value is calculated by taking the difference between
the inflows and the outflows. Related Reading | Short
Positions Over $165 Million Get Liquidated Following The Bitcoin
And Ethereum Uptrend This indicator has shown a huge negative spike
recently, a trend which makes sense given the exchange reserve has
plunged down. The quant notes that these withdrawals took place on
the crypto exchange Gemini and amounted to around 800k ETH. Gemini
is popularly known to be used by whales. In the past, transfers to
and from the exchange have usually had a noticeable impact on the
market. As such, such a large number of coins exiting from the
exchange can mean Ethereum’s near term outlook might be bullish.
ETH Price At the time of writing, Ethereum’s price floats around
$1.6k, up 13% in the last seven days. Over the past month, the
crypto has gained 45% in value. The below chart shows the trend in
the price of the coin over the last five days. Looks like the value
of the crypto has been moving sideways during the last few days |
Source: ETHUSD on TradingView Featured image from Bastian Riccardi
on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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