- Crypto exchanges experienced an inflow of 8,170 ETH before yesterday’s dip to $370
- This translates to around $3.1 Million using an Ethereum rate of $380
- Of this amount 4,000 ETH was deposited to Binance before the brief meltdown
- Selling of Ethereum could indicate buying exhaustion and a correction in the pipeline for ETH
This week kicked off on a tumultuous note in the crypto markets due to the two events of a US presidential elections today, and the rise of COVID19 cases in Europe that is causing further lockdowns. Early Monday saw the price of Ethereum drop from $404 to $370 in less than 6 hours.
Ethereum Holders Sent 8,170 ETH to Crypto Exchanges Before Dip
According to the team at CryptoQuant, approximately 8,170 ETH was sent to crypto exchanges before the dip. This translates to roughly $3.1 Million using Ethereum’s current price of $380. The team at CryptoQuant further shared their observation of the inflow of Ethereum into exchanges via the following tweet.
$ETH Exchange Inflow Mean for all exchanges hit 8,170 before the drop.
— CryptoQuant.com (@cryptoquant_com) November 2, 2020
Also worth mentioning is that 4,000 ETH of this amount was sent to Binance 20 minutes before Ethereum took a brief nosedive in the crypto markets. This event was captured by the team at CoinMetrics as can be seen in the following tweet.
— CoinMetrics.io (@coinmetrics) November 2, 2020
ETH Inflows Could Hint of a Local Top for Ethereum
The selling of Ethereum begun around the $400 price zone. This could signify that this price area was the last region that some ETH investors could sell their bags at a profit. Additionally, it could be the first sign of exhaustion for Ethereum at least for the month of November.
Further checking the daily ETH/USDT chart above, Ethereum could be in the midst of printing a bear flag that could result in the retest of several support zones above $300. They include those found at $365, $336, $320 and $309.
Also from the chart, the following can be observed.
- The 50-day moving average is providing a level of support at the $370 price area
- The 200-day MA is providing adequate support at the $300 price area
- Failure of the aforementioned support zones could lead to Ethereum dropping to as low as $250
- Trade volume is in the red with the daily MACD confirming bearishness for Ethereum
- The daily MFI and RSI are also hinting at a correction at values of 58 and 46 respectively
Summing it up, Ethereum holders transferred 8,170 ETH to crypto exchanges before yesterday’s drop from $400 to $370. The transfer and subsequent selling could hint of bullish exhaustion for Ethereum and could open the doors for a correction for the better part of November.
As with all analyses of Ethereum, traders and investors are advised to use adequate stop losses when trading ETH on the various derivatives platforms.