News Exchange

ETH escape from Gemini, a bullish sign for Ethereum?

The data on the blockchain show that around 800.000 ETH have come out of the portfolios of the crypto exchange Gemini, For a signal that could prove bullish for Ethereum.

As pointed out by an analyst in a CryptoQuant post, in fact, the Ethereum reserve has plummeted to its lowest level since 2018. When the value of this metric drops, it means that the number of coins on exchanges is decreasing. A trend of this type, if prolonged, can be a sign of accumulation by investors, and therefore can be bullish for the price of the cryptocurrency.

That said, it is also true that an increase in the reserve implies that users are depositing their coins. As investors usually move to exchanges to sell, this type of trend can have bearish consequences for ETH.

In short, once again the opportunity is useful to remind us that one should never invest in a cryptocurrency for the sole appearance of an indicator, but that it is necessary to evaluate this indicator in synergy with other metrics.

Having remembered the above, we cannot fail to underline how Gemini is an exchange known to be used by whales. In the past, transfers to and from the exchange have usually had a major impact on the market. Therefore, such a large number of coins coming out of the exchange can mean that Ethereum's near-term outlook could be bullish.

Ethereum's price currently fluctuates around $ 1,6k, up 13% over the past seven days. Over the past month, the cryptocurrency has gained 45% in value.

 

Buying Cryptocurrencies? Exchange Binance Binance

Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

Similar posts

Leave a comment

Your email address will not be published.

Back to top button