Negative 30-day netflow average for Ethereum signals stronger buyer control in the market
Ethereum, the second-largest cryptocurrency by market capitalisation, is within striking distance of its all-time high near $4,860, posting a 10.34% gain and currently trading at $4,691 [1]. If Ethereum manages to break through this barrier, it would enter price discovery for the first time in nearly four years, potentially triggering an acceleration in buying activity [2].
A historically tight supply, strong on-chain accumulation, and technical strength near all-time highs have set the stage for a pivotal breakout [2]. The significant accumulation trend is one of the most significant in recent history [3]. Tokens moved off exchanges are typically held in private wallets or deployed in staking and DeFi protocols, indicating a consistent trend where more ETH is being withdrawn from exchanges than deposited [1][2].
This sustained withdrawal indicates strong conviction among Ethereum holders. Top analyst Burak Kesmeci reports 1.2 million ETH withdrawn from exchanges in one month [1]. The Ethereum All Exchanges Netflow metric has been firmly in negative territory for 2025, strengthening in recent weeks [1]. As of August 12, 2025, the SMA30 stands at -40,000 ETH, representing an average daily outflow of 40,000 ETH over the past month [1].
Negative netflows indicate stronger buying pressure for Ethereum. The current negative netflow environment helps maintain bullish momentum for Ethereum, as long as the trend continues [4]. The slope of the 50-week SMA is turning sharply upward, reflecting the speed of recent gains [3]. A shift to positive territory in the SMA30 could signal easing demand but for now, the momentum remains with the bulls [3].
The $4,700-$4,860 range remains a historically significant resistance zone, and profit-taking could cause short-term pullbacks [3]. However, Ethereum is above its 50-week, 100-week, and 200-week Simple Moving Averages, confirming a robust long-term uptrend [3].
The impact of these negative netflows on Ethereum's price is significant. Negative netflows reflect strong buying pressure, as investors accumulate ETH in anticipation of future price appreciation [1]. The transfer of ETH from exchanges to private wallets and staking reduces immediate selling pressure, supporting a bullish market environment [4]. The sustained outflows suggest that investors view Ethereum as undervalued at current levels, which can fuel further price increases [1][2].
Observing negative netflows alongside other market indicators is crucial for understanding the broader market direction. While this trend supports a positive outlook, it should be considered in conjunction with other indicators to avoid premature conclusions about market trends [1]. Ethereum's recent breakout against Bitcoin highlights its growing potential in the crypto market, suggesting that Ethereum’s rally could be part of a larger recognition phase [4].
Overall, Ethereum's sustained negative netflows are a positive indicator for Ethereum's price, reflecting strong investor confidence and reduced selling pressure. However, market dynamics can change rapidly, and ongoing trends should be monitored closely for potential shifts.
References: 1. Cointelegraph 2. Decrypt 3. CoinDesk 4. The Block
- With Ethereum nearing its all-time high, traders are observing a significant accumulation trend, withdrawing tokens from exchanges to deploy in staking and DeFi protocols, indicating strong conviction among holders.
- The Ethereum All Exchanges Netflow metric has been consistently negative for 2025, suggesting stronger buying pressure and maintenance of bullish momentum.
- As of August 12, 2025, the SMA30 stands at -40,000 ETH, representing an average daily outflow of 40,000 ETH over the past month, reinforcing the negative netflow environment.
- Negative netflows can have a significant impact on Ethereum's price, as they reflect strong buying pressure and reduced selling pressure, supporting a bullish market environment.
- The recent breakout of Ethereum against Bitcoin underlines its growing potential in the crypto market, hinting that Ethereum’s rally could be part of a larger recognition phase.
- The impact of these trends on Ethereum's price should be considered in conjunction with other market indicators to avoid premature conclusions about market trends.
- Ongoing trends, such as Ethereum's sustained negative netflows, should be monitored closely to stay informed of any potential shifts in the market.
