CryptoOnchain
ETH Netflow Reversal: Is Binance Leading the Potential Selling Pressure?
Despite the recent decline in Ethereum’s price, a notable shift has been observed in the 7-day moving average of Exchange Netflow (Total). For all exchanges combined, the netflow has transitioned from significant outflows to inflows, rising from approximately -57,000 ETH on October 16th to +7,000 ETH recently. Concurrently, Binance plays a substantial role in this shift. Binance’s 7-day netflow moved from roughly -31,000 ETH on October 15th to +3,000 ETH. These figures indicate that approximately 50% of the total change in exchange netflow can be attributed to activities on Binance. This sudden increase in ETH flowing into exchanges, especially while Ethereum’s price is declining, could signal heightened selling pressure. Holders might be moving their assets to exchanges with an intent to sell, which, if sustained, could contribute to further selling liquidity and downward pressure on Ethereum’s price. This presents a cautious short-term signal that should be considered alongside other market indicators.