- Ethereum sees increased active deposits towards the weekend, hinting at increased volatility.
- Nonetheless, exchange netflow revealed constant negative outflows.
Ethereum has seen significant price fluctuations lately, and Santiment’s latest data shows the second-largest crypto by market cap, as per CoinGecko, might see increased volatility into the weekend. That’s according to the active deposit metric.
Nonetheless, Ethereum’s netflow clarifies the current sentiments, overriding the effect of the token’s price swings.
Ether Active Deposits Soar
Santiment revealed that Ethereum saw a substantial uptick in some crucial metrics on June 9. The analytic platform revealed that the active deposit metric displayed a significant uptick toward the weekend.
Ethereum’s active deposit index hit a remarkable number of more than 17,500, touching the highest mark since March. That suggests impending volatility for ETH. Meanwhile, the deposit transaction metric climbed beyond 17,700.
Moreover, it’s noteworthy that active deposits include outgoing and incoming transactions. Therefore, evaluating the metric may not offer a definite assessment as it shows increased participation. You may have to analyze other indexes to understand the situation at hand. Let’s dig deep.
Ether Exchange Netflow
Santiment’s chart reveals a significant bias of ETH tokens exiting exchanges, decreasing the volume held on the trading platforms. The supply on the exchange index for Ethereum plunged to 9.45% at press time.
Moreover, CryptoQuant’s exchange netflow stats shows outflows dominated exchanges within the last few days. The crypto recorded negative flows at around 30,000 ETH at this writing. That showed increased accumulation and declined sell-off risks. While that can mean bullishness, it also highlights upcoming volatility.
Ethereum Price Trend & Volatility
Ethereum price experienced a notable downtrend during this publication. The daily chat shows ETH lost more than 5% over the past 24 hours to trade at $1,740 at press time. The Bollinger Bands (BB) highlights emerging volatility.
Moreover, the latest dip saw Ethereum’s Relative Strength Index plunging beneath 40, highlighting a massive bearish bias within the market. It remains crucial to watch what the weekend with have for ETH.
Enthusiasts should follow the latest news to understand the market’s next direction.
