Ethereum (ETH) has experienced a significant outflow of $1.2 billion from centralized exchanges over the past week, indicating a potential bullish trend. This outflow suggests that investors are withdrawing their ETH for long-term holding rather than selling. The data was reported on X by Sentora, formerly IntoTheBlock.
According to Sentora, this sustained trend of net outflows, which has intensified since early May, signals continued accumulation and reduced sell-side pressure. However, analytics firm Santiment notes that Ethereum's Market Value to Realized Value (MVRV) ratio is currently high. The 30-day MVRV ratio sits at 32.5%, above the 15% danger zone for altcoins, suggesting the rally may slow or halt.
Despite this, Ethereum is trading around $2,600, up over 43% in the last week. The negative Exchange Netflow, as reported by Sentora, implies reduced sell-side pressure and potential for further price appreciation. Investors have been withdrawing coins from exchanges for long-term holding.
Santiment's analysis indicates that recent ETH buyers are in significant profit. This high profitability, as reflected in the MVRV ratio, may lead to a slowdown in the rally. The market may need to cool down before further price increases.
The combination of substantial outflows and high profitability presents a mixed outlook for Ethereum. While the outflows suggest strong accumulation, the elevated MVRV ratio indicates potential for a near-term slowdown.
This article is based on our author's analysis of materials taken from the following resources: X (formerly Twitter), Santiment.