joaowedson
Ethereum price tops and bottoms are defined by coin flow
An interesting way to identify tops and bottoms in the Ethereum price is to analyze the behavior of Exchange Flow indicators and transactions on its blockchain. For this analysis, we will use two metrics: Exchange Inflow (Mean, MA7), which measures investors' deposits in exchanges for potential sales, and Tokens Transferred USD (Total), which measures the total amount of tokens transferred in this window, calculated in USD. When we compare these metrics to the ETH-USD price, it becomes clear that high levels of Tokens transferred define local tops. When this metric decreases, the price experiences a long period of decline. When Exchange Inflow (MA7) has a high peak compared to previous values, the bottom of the Ethereum price is defined. This behavior may be related to the process of capitulation in the price, where many investors sell their coins in desperation #Ethereum #Bitcoin