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Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%

Ethereum Bearish Signal Goes Off As 100k ETH Flows Into Binance

Keshav Verma
Keshav Verma
4 years ago
3 mins read
Ethereum Bear

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Today’s Ethereum price chart may suggest the formation of a bearish pattern called the “double top”. 100k ETH also flowed into Binance.

Ethereum Price Chart Shows Famous “Double Top” Bearish Formation

As explained by a CryptoQuant post, the cryptocurrency formed a bearish pattern on the price chart earlier today, and at about the same time, Binance also noticed a netflow of around 100k ETH.

Here is a Ethereum chart that clearly shows the bearish pattern:

Ethereum Bearish Pattern

ETH's price chart showed a bearish formation earlier today | Source: CryptoQuant 

As the above chart shows, Ethereum seems to have formed what’s popularly known as the “double top” pattern. Historically, formation of such peaks has been a bearish signal.

However, a double top can’t be confirmed until the price drops below the support level marked by the dip between the two peaks.

Related Reading | Flash Crash, Ethereum Tests Support With 17% Drop And Risks Further Losses

The above chart was actually posted by the analyst a few hours ago. A more recent version of the chart looks something like this:

Ethereum Price Chart

ETH's price continues to show volatility | Source: ETHUSD on TradingView

It looks like right after forming the two peaks, the price seems to have crashed down to $3.2k, which is below the 3.3k support level.

In most cases, such a dip confirms that the formation is a bearish double top. However, here the price seems to already be moving back up the support level.

Related Reading | Twitter To Allow Users Receive Bitcoin And Ethereum Via Its Tip Jar Feature

Following a double top event, the support level becomes resistance so that the price stays below it for a while. It’s possible it could just be a shoulder formation, and that the bearish trend might still be active.

Though the opposite could also be true; the price might keep going back up instead. However, another bearish signal also went off…

About 100k ETH Flows Into Binance

Around the same time that the two peaks formed, the netflow indicator for Ethereum showed that about 100k ETH flowed into the crypto exchange Binance.

The “netflow” is a metric that shows the net amount of coins moving into or out of exchanges. It’s calculated by simply taking the difference between the inflows and the outflows.

When the indicator takes a negative value, it means more ETH is moving out than in, while a positive value implies the reverse.

Here is a chart that shows the Ethereum netflow for all exchanges:

Ethereum Netflows

The ETH netflow spikes up | Source: CryptoQuant

The spike on the chart shows that about 100k ETH flowed into exchanges, and chain data confirms it was into the crypto exchange Binance.

Such a positive spike generally implies investors are facing heavy selling pressure, and thus they are sending their coins to exchanges for dumping them.

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Keshav Verma
Keshav Verma

Keshav Verma

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

Read more

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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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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