Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase
16 October 2021 - 6:00AM
NEWSBTC
On-chain data shows crypto exchange Coinbase saw a withdrawal of
400k Ethereum yesterday. 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 pointed out by a
CryptoQuant post, about 400k ETH (1.5 billion at the current
exchange rate) was withdrawn yesterday from the crypto exchange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 shows a big spike, it means a lot 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withdrawn from the exchange.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,
constant outflows can mean that there is a buying pressure in the
market and investors feel bullish on Ethereum. Now, here is how the
chart for the indicator looks like for the crypto exchange
Coinbase: ETH's outflow showed a large spike yesterday | Source:
CryptoQaunt As the above graph shows, the crypto exchange Coinbase
saw a spike of a massive 400k Ethereum in outflows yesterday.
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. Related Reading | Only In Crypto: A Croissant
Lists Potential Bullish Drivers For Bitcoin And Ethereum In Q4 2021
Institutional investors being bullish on ETH can mean huge 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
already signal that institutional investors are taking their coins
out of exchanges to perhaps 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 amassed 25% in gains. The below chart shows the
trend in the price of the coin over the last five days: ETH's price
makes a push up and approaches the $4k mark | Source: ETHUSD on
TradingView ETH has made a big push in the last few 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. Related Reading
| TA: Ethereum Follows Bitcoin, Why ETH Could Surge Towards
$4K If the outflows are anything to go by, the general sentiment
seems to be bullish and institutional investors getting involved
can help with the big price pushes the crypto needs to break
important resistance lines. Featured image from Unsplash.com,
charts from TradingView.com, CryptoQuant.com
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