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.
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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above graph, the Ethereum exchange reserve has observed a crash in the last day as a large number of coins have been withdrawn.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.
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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.
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