Ethereum’s exchange deposit surge: Uncovering trends, outflows, and price upticks

Post­ed: Sep­tem­ber 19, 2023

• Exchange deposits of Ethereum have spiked to a nine-month high
• ETH saw a slight uptrend in price but was still stuck in a bear trend

Ethereum has seen a notable surge in exchange deposits, mark­ing a lev­el of activ­i­ty not seen in months. How­ev­er, amidst this surge, which exchange flow has con­sis­tent­ly main­tained the high­est flow in recent days?

Read Ethereum (ETH) Price pre­dic­tion 2023–24

Ethereum deposits spike

Accord­ing to a tweet by Glassnode Alerts, there has been a sig­nif­i­cant upswing in ETH deposits. In fact, at the time of writ­ing writ­ing, exchange deposits had exceed­ed 161,000, mark­ing the high­est lev­el observed in over nine months. 

Pri­or to this, the high­est deposit lev­el record­ed on the chart was approx­i­mate­ly 98,000, and this was in January.

Source: Glassnode

To pro­vide some con­text to the same, it is worth not­ing that Ethereum typ­i­cal­ly wit­nessed an aver­age exchange deposit of around 30,000, exclud­ing occa­sion­al spikes. This con­text empha­sizes the sig­nif­i­cance of the recent spike and prompts ques­tions about its impact on the flow of Ethereum.

Analyzing the Ethereum exchange flow

Despite the notable increase in exchange deposits, as illus­trat­ed by Glassnode’s chart, it appears that more Ethereum has been exit­ing exchanges. Accord­ing to the Net­flow chart pro­vid­ed by Cryp­to­Quant, over the past few days, Ethereum out­flows have been sur­pass­ing inflows. 

This is a sign that even though sig­nif­i­cant vol­umes of ETH were being deposit­ed into exchanges, an even greater amount was being withdrawn.

Source: Cryp­to­Quant

The net­flow chart revealed that the last instance of inflows sur­pass­ing out­flows hap­pened around 15 Sep­tem­ber. At press time, how­ev­er, the net­flow is ‑18,223. Here’s the caveat though – The net­flow direc­tion may change by the end of the day, but the dom­i­nance of out­flows remains apparent.

Spike in volume?

Exam­in­ing the vol­ume met­ric via San­ti­ment also revealed fluc­tu­a­tions in Ethereum’s recent trad­ing activ­i­ty. The chart indi­cat­ed that Ethereum’s trad­ing vol­ume record­ed a decline, drop­ping to approx­i­mate­ly $2.7 bil­lion on 17 Sep­tem­ber from over $4 bil­lion the day before. 

How­ev­er, at the time of writ­ing, the vol­ume had rebound­ed to sur­pass $3 bil­lion, sig­nalling a slight hike on the chart.

Source: San­ti­ment

It remains uncer­tain whether the surge in exchange deposits played a role in this vol­ume uptick, but it’s cer­tain­ly a plau­si­ble fac­tor to consider.

– How much are 1,10,100 ETHs worth today

ETH’s uptrend not strong enough 

Fol­low­ing two con­sec­u­tive days of a slight price decline, Ethereum has appre­ci­at­ed on its dai­ly price chart. At press time, it was trad­ing at approx­i­mate­ly $1,633, reflect­ing a mod­est hike of less than 1%. 

Notably, the short-term Mov­ing Aver­age (yel­low line) con­tin­ued to act as resis­tance, par­tic­u­lar­ly around the $1,700-price lev­el. Addi­tion­al­ly, Ethereum’s Rel­a­tive Strength Index (RSI) remained below the neu­tral line, indica­tive of its ongo­ing bear­ish trend.

Source: Trad­ingView