Ethereum Bullish Signal: 800k ETH Exits From Gemini

Keshav Verma

2 years ago

3 mins read

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On-chain data shows around 800k ETH has exited wallets of the crypto exchange Gemini, a sign that could prove to be bullish for Ethereum.

Crypto Exchange Gemini Observes outflows Of 800k ETH

As pointed out by an analyst in a CryptoQuant post, the Ethereum exchange reserve has plunged down to lows not seen since 2018.

The “all exchanges reserve” is an indicator that measures the total amount of Ethereum currently stored on wallets of all centralized exchanges.

When the value of this metric goes down, it means the number of coins on exchanges are going down. Such a trend, when prolonged, can be a sign of accumulation from investors, and hence can be bullish for the price of the crypto.

On the other hand, an increase in the reserve implies users are depositing their coins right now. Since investors usually transfer to exchanges for selling purposes, this kind of trend can have bearish consequences for ETH.

Now, here is a chart that shows the trend in the Ethereum all exchanges reserve over the last couple of months:

The value of the indicator seems to have plummeted down over the past 24 hours | Source: CryptoQuant

As you can see in the above graph, the Ethereum exchange reserve has observed a crash in the last day as a large number of coins have been withdrawn.

The chart also includes data for the “netflow,” which tells us about the amount of ETH entering or exiting exchange wallets (or more simply, it measures the changes in the exchange reserve). Its value is calculated by taking the difference between the inflows and the outflows.

This indicator has shown a huge negative spike recently, a trend which makes sense given the exchange reserve has plunged down.

The quant notes that these withdrawals took place on the crypto exchange Gemini and amounted to around 800k ETH.

Gemini is popularly known to be used by whales. In the past, transfers to and from the exchange have usually had a noticeable impact on the market.

As such, such a large number of coins exiting from the exchange can mean Ethereum’s near term outlook might be bullish.

ETH Price

At the time of writing, Ethereum’s price floats around $1.6k, up 13% in the last seven days. Over the past month, the crypto has gained 45% in value.

The below chart shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has been moving sideways during the last few days | Source: ETHUSD on TradingView

Featured image from Bastian Riccardi on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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