On-chain data shows the crypto exchange Coinbase withdrew 400k Ethereum yesterday. This could be a sign of institutional investors ’activity and be bullish for the currency.
Coinbase monitors the outflow of 400,000 ETH
As indicated by a CryptoQuant post, about 400k ETH (1.5 billion at current exchange rates) was withdrawn from the crypto exchange Coinbase yesterday.
The indicator used here is Ethereum Outflow, which shows the total number of currencies issued from the exchange wallet.
When the metric shows a large spike, it means many ETHs were withdrawn from the exchange. Investors usually collect large quantities of their coins or sell them through OTC deals.
Thus, continued outflows may mean that there is a buying pressure in the market and investors feel brighter in Ethereum.
Now, here is how the index chart for Crypto Exchange Coinbase looks like:
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt
As the graph above shows, the crypto exchange Coinbase saw a spike of 400k Ethereum in the outflow yesterday.
This large inflow could be a sign of activity from institutional investors because of course the natural holders will not have so much money.
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Institutional investors being bullish on ETH can mean huge things for crypto. If ETH has to go to the next leg up, it will require a lot of money and it will usually involve whales like institutional investors.
Since these flows have already signaled that institutional investors are taking their currencies out of the exchange, perhaps to huddle them, ETH’s outlook looks bullish.
At the time of writing, ETH’s price has risen 9% in the last seven days, close to $ 59.9k. In the last thirty days, crypto has gained 25% profit.
The following chart shows the trend of currency prices in the last five days:
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView
ETH has given a big push in the last few days as the currency has now reached a test of the $ 4k mark. At the moment it is unclear whether ETH can maintain this momentum and soon reach a new all-time high (ATH), or if it breaks again.
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If the outflow remains at anything, the general feeling seems bullish and institutional investors can get involved and help the big price that cryptocurrencies need to break important resistance lines.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com