On-chain data shows the Ethereum exchange netflow has witnessed a negative spike during the past week, a potential sign that investors have been accumulating.<\/p>\n
As pointed out by institutional DeFi solutions provider Sentora in a new post<\/a> on X, Ethereum has seen net outflows from exchanges in the past week. The indicator of relevance here is the \u201cExchange Netflow<\/a>,\u201d which measures the net amount of ETH that\u2019s moving into or out of wallets connected with centralized exchanges.<\/p>\n When the value of this metric is positive, it means the investors are depositing a net number of tokens to these platforms. As one of the main reasons why holders deposit their coins to exchanges is for selling-related purposes, this kind of trend can be bearish for the asset\u2019s price.<\/p>\n On the other hand, the indicator being below zero suggests outflows are dominating the inflows on exchanges. Such a trend can be a sign that investors are in a phase of accumulation, which can naturally be bullish for the cryptocurrency.<\/p>\n As the data shared by Sentora shows, Ethereum has seen a weekly Exchange Netflow value of -$978.45 million, indicating that traders have made a massive amount of net withdrawals.<\/p>\n The significant outflows have come as Ethereum has witnessed a decline during the past week. As Sentora explains:<\/p>\n This signals aggressive accumulation where investors are likely \u201cbuying the dip\u201d and withdrawing assets to cold storage or on-chain environments, tightening the liquid supply despite the negative price momentum.<\/p>\n The price drawdown in the past week has also accompanied a drop in the total transaction fees<\/a> on the network, meaning that transfer activity has gone down. The blockchain saw about $2.64 million in fees over the last week, which is more than 15% down week-over-week.<\/p>\n Ethereum observed a decline to $2,780 on Thursday, but the asset was able to bounce back as it\u2019s now floating just under $3,000.<\/p>\n Interestingly, ETH\u2019s bottom was around the same level as a major on-chain supply cluster, as a chart shared by analyst Ali Martinez in an X post<\/a> shows.<\/p>\nETH Saw A Brief Visit Under $2,800 Before Rebounding<\/h2>\n