Massive ETH Inflows to Exchanges Could Hinder Breakthrough Resistance
A significant amount of ETH has been sent to centralized exchanges, resulting in increased Ethereum balances on these platforms. This influx of ETH could potentially pose a barrier for the cryptocurrency in surpassing the $2,000 resistance level.
Investors Transfer 13,000 ETH to Exchanges
Data from IntoTheBlock reveals a substantial increase in ETH flowing towards exchanges as the price of Ethereum rose. The total inflow volume reached 480,570 when the price surpassed the $1,800 resistance on October 31. However, this number significantly surged by the beginning of November.
On November 1, the total ETH inflow into exchanges reached 774,890, coinciding with the establishment of bullish dominance above the $1,800 level. Meanwhile, outflows amounted to approximately 630,000 ETH. Consequently, the netflows on November 1 indicated that around 130,000 ETH flowed into exchanges as investors began taking profits from their holdings.
The majority of Ethereum investors returned to a profitable position after surpassing $1,800. Even after a retracement, approximately 55.40% of ETH investors remain in profit and it is expected that some would want to secure their gains.
However, there has been a decrease in inflows from investors since November 2. Thursday’s data shows that ETH inflow figures fell to 637,070, although still higher than the previous week’s figures. As a result, exchange net flow decreased to 31,040 ETH by Thursday.
In terms of transaction volumes, large transactions in ETH increased from $1.33 billion to $4.04 billion.
Bullish Transactions Continue to Lead
When analyzing bullish and bearish transactions, there is not a significant difference as bulls continue to dominate in the asset. The 7-day total for bulls amounted to 98, compared to 87 bears. However, the gap is gradually narrowing on a daily basis, with IntoTheBlock’s data showing 14 bulls and 12 bears.
Hot Take: ETH Faces Resistance Amidst Influx of Coins to Exchanges
With a substantial amount of ETH being sent to centralized exchanges, Ethereum may encounter difficulties in breaking through the $2,000 resistance level. The increase in exchange balances suggests that some investors are taking profits from their holdings, potentially hindering further upward movement in price. While bullish sentiment remains strong, it remains to be seen whether Ethereum can overcome this barrier and continue its upward trajectory.
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