Blockchain
Ethereum ETH Price Rally Spurs $300 Million Inflows To Crypto Exchanges, Likely A Sign Of Profit Taking
Ether (ETH) Holders are sending assets to cryptocurrency exchanges at the fastest pace in nearly four months following the cryptocurrency’s rally on growing anticipation of an exchange-traded fund approval in the United States.
Blockchain data from Nansen Intelligence shows that net inflows on exchanges on Tuesday reached 81,840 ETH worth around $306 million at current prices, the highest one-day amount since January 23.
Tuesday was also the third consecutive day of inflows, marking a break from the general trend of decreasing ETH balances on exchanges, Nansen data shows. The last time ETH saw consecutive days of inflows on trades was in March, near this year’s peak in cryptocurrency prices.
Moving assets across exchanges usually signals an intent to sell, while traders typically withdraw tokens from platforms if they want to hold onto purchases for a longer period.
The surging inflows could signal short-term profit-taking after ETH surged to above $3,800 from around $3,000 in one day, noticed David Shuttleworth, research partner at Anagram.
“My sense is [that] individuals are experiencing a rapid 30% price increase that occurred in less than 24 hours,” Shuttleworth said in a direct message on X.
The rally came as odds for U.S. regulatory approval for spot ETH ETFs increased almost overnight with regulators asking issuers to update their applications after months of lack of effort.