On-chain information programs crypto exchange Coinbase saw a withdrawal of 400k Ethereum the other day. This could be a sign of activity from institutional investors, and could prove to be bullish for the coin.
Coinbase Observes Outflow Of 400,000 ETH
As explained by a CryptoQuant post, about 400k ETH (1.5 billion at the existing exchange rate) was withdrawn the other day from the crypto exchange Coinbase.
The indicator used here is the Ethereum outflow, which shows the total number of coins exiting wallets of the exchange.
When the metric programs a huge spike, it implies a great deal of ETH was withdrawn from the exchange. Investors usually take out a lot of coins to either hodl them or to sell them through OTC deals.
So, consistent outflows can suggest that there is a purchasing pressure in the market and financiers feel bullish on Ethereum.
Now, here is how the chart for the indicator looks like for the crypto exchange Coinbase:
As the above chart programs, the crypto exchange Coinbase saw a spike of an enormous 400k Ethereum in outflows the other day.
Outflows this big can be a sign of activity from institutional investors as certainly normal holders won’t have these many coins to move around.
Institutional financiers being bullish on ETH can suggest substantial things for the crypto. If ETH has to move to the next leg up, it will need a lot of money pumped into it, and this usually means whales like institutional investors need to get involved.
As these outflows currently indicate that institutional financiers are taking their coins out of exchanges to possibly hodl them, ETH’s outlook looks bullish.
Ethereum Price
At the time of writing, ETH’s price floats around $59.9k, up 9% in the last seven days. Over the last thirty days, the crypto has actually collected 25% in gains.
The below chart shows the trend in the price of the coin over the last five days:
ETH has actually made a huge push in the last couple of days as the coin now approaches a test of the $4k mark. It’s unclear at the moment if ETH can keep this momentum going and reach a new all time high (ATH) soon, or if it will falter once again.
If the outflows are anything to pass, the basic belief appears to be bullish and institutional financiers getting included can assist with the huge cost presses the crypto requires to break essential resistance lines.
