Data on the chain shows that the Coinbase crypto exchange saw a pullback of 400,000 Ethereum yesterday. This could be a sign of activity on the part of institutional investors and could prove bullish for the coin.
Coinbase observes an exit of 400,000 ETH
As one CryptoQuant pointed out Publish, around 400,000 ETH (1.5 billion at the current exchange rate) were withdrawn from the Coinbase crypto exchange yesterday.
The indicator used here is the Ethereum Outflow, which shows the total number of coins leaving the exchange’s wallets.
When the metric shows a large spike, it means a large chunk of ETH has been taken out of the exchange. Investors typically take out a lot of coins to hold them or sell them through OTC agreements.
So, constant exits can mean that there is buying pressure in the market and investors are feeling bullish on Ethereum.
Now here is what the indicator chart looks like for the Coinbase crypto exchange:
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt
As the chart above shows, the Coinbase crypto exchange saw a spike in massive outflows of 400,000 Ethereum yesterday.
Such large exits can be a sign of activity on the part of institutional investors, as normal holders will certainly not have so many coins to move.
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Institutional investors bullish on ETH can mean huge things for crypto. If ETH is to take the next step, it will need a lot of money, which usually means whales like institutional investors need to get involved.
As these exits are already signaling that institutional investors are pulling their coins off the stock exchanges to possibly hold them, the outlook for ETH looks bullish.
At the time of this writing, the price of ETH is floating around $ 59.9,000, up 9% over the past seven days. Over the past thirty days, the crypto has amassed 25% gains.
The chart below shows the coin’s price trend over the past five days:
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView
ETH has taken a big step forward in recent days as the coin now approaches a test of the $ 4,000 mark. It is not yet known whether ETH can maintain this momentum and soon reach a new all-time high (ATH), or if it will weaken again.
Related reading | TA: Ethereum follows Bitcoin, why ETH could hit $ 4,000
If exits are anything to go by, the general sentiment appears to be bullish and institutional investors who get involved can help with the strong price surges the crypto needs to break important resistance lines.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com