On-chain data shows that the Ethereum exchange network’s flow has seen negative growth over the past week, a potential sign of investor accumulation.
Ethereum Exchange’s netflow has been red for the past week
As institutional DeFi solutions provider Sentora noted in a recent post on X, Ethereum saw net outflows from exchanges last week. A significant metric here is “Exchange Netflow,” which measures the net amount of ETH that flows into or from wallets associated with centralized exchanges.
When the value of this indicator is positive, it means that investors are depositing a certain number of net tokens on these platforms. Since one of the main reasons holders deposit their coins on exchanges is for selling purposes, this type of trend could have an adverse effect on the price of the asset.
On the other hand, the value of the indicator below zero suggests that outflows dominate over inflows to the stock exchanges. Such a trend may be a sign that investors are in the accumulation phase, which can naturally be bullish for the cryptocurrency.
As data shared by Sentora shows, Ethereum recorded a weekly Exchange Netflow value of -$978.45 million, indicating that investors made a huge number of net withdrawals.
The significant outflows came as Ethereum has seen a decline over the past week. As Sentora explains:
This signals aggressive accumulation, where investors are likely to “buy the dip” and withdraw assets into chilly storage or on-chain environments, tightening liquid supply despite negative price dynamics.
Last week’s price cut was also accompanied by a decline in total online transaction fees, which means a drop in transfer activity. Last week, blockchain fees recorded approximately $2.64 million, down more than 15% week-on-week.
ETH saw a brief visit below $2,800 before rebounding
Ethereum saw a decline to $2,780 on Thursday, but the asset was able to rebound as it is currently trading at just under $3,000.
Interestingly, the ETH bottom was roughly at the same level as the main supply cluster on the chain, as shown in a chart shared by analyst Ali Martinez on X post can be seen.
In the chart, Martinez included Ethereum UTXO Realized Price Distribution (URPD) data from analytics firm Glassnode. This indicator essentially tells us how many recent transactions have been made within the ETH supply at the various price levels that the coin has visited in its history.
There is a huge supply zone on URPD located at $2,772, which suggests that a vast number of investors are leaning on it. Generally, such levels act as a support boundary during downtrends because investors who bought there buy the dip to defend it.
