On-chain data shows the Ethereum netflows are sharply turning positive, a sign that could prove to be bearish for the crypto.

Ethereum Exchange Reserve Rises As Netflows Become Positive

As pointed out by an analyst in a CryptoQuant post, exchanges have observed net ETH inflows recently, swelling up their reserves.

The “all exchanges netflow” is an indicator that measures the net amount of Ethereum moving into or out of wallets of all exchanges. The metric’s value is calculated by taking the difference between the inflows and the outflows.

When the value of the indicator is positive, it means exchanges are getting more inflows right now than outflows. Such a trend can be bearish for the price of the coin as investors usually deposit their ETH to exchanges for selling purposes.

On the other hand, negative netflow values imply that outflows are currently overwhelming the inflows. Sustained such values can be bullish for Ethereum as it may be a sign of accumulation.

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Now, here is a chart that shows the trend in the ETH netflows over the past year:

Ethereum Netflows

Looks like the indicator's value has recently risen above zero | Source: CryptoQuant

As you can see in the above graph, the Ethereum netflows have sharply increased to positive values in the past couple of weeks.

The effect of these net inflows can be seen through the exchange reserve indicator, which measures the total amount of ETH sitting on exchanges. Below is the chart for it.

Ethereum Exchange Reserve

The indicator seems to have...

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