The string data shows that the Coinbase crypto switch took a 400,000 Ethereum pullback yesterday. This could be a sign of institutional investor activity and could result in a bullish currency.
Coinbase sees 400,000 ETH outputs
As reported in a CryptoQuant article, around 400,000 ETH (1.5 billion at the current exchange rate) were taken out of the Coinbase crypto swap yesterday.
The indicator used here is the Ethereum Outflow, which shows the total number of coins that come out of the stock exchange wallets.
When the metric shows a large increase, it means that a large amount of ETH has been removed from the exchange. Investors often withdraw many currencies to store or sell them through over-the-counter contracts.
Therefore, steady exits could mean that there is buying pressure in the market and investors are bullish on Ethereum.
Here is what the indicator chart looks like for the Coinbase encryption switch:
ETH exit showed big bullishness yesterday | Source: CryptoQuant
As the chart above shows, the Coinbase cryptocurrency exchange peaked at 400,000 Ethereum in outflows yesterday.
These large outflows could be a sign of activity on the part of institutional investors, as normal holders certainly won’t have as many currencies to move.
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Institutional investors optimistic about ETH could mean big things for cryptocurrencies. If ETH is to take the next step, it will need a lot of money, which often means that whales, as well as institutional investors, need to get involved.
As these exits already indicate that institutional investors are pulling their currencies off the stock exchanges to possibly bail them out, the outlook for ETH looks optimistic.
As of this writing, the price of ETH is around $59.9K, a 9% increase over the past seven days. Over the past thirty days, encryption has accumulated 25% profit.
The following chart shows the currency price trend over the last five days:
ETH price rises to approach $4,000 bar | Source: ETHUSD on TradingView
ETH has given a big boost in recent days as the currency now approaches a test of the $4,000 mark. At the moment, it is unclear whether ETH can maintain that momentum and soon reach a new all-time high (ATH), or if it will fail again.
Related reading | TA: Ethereum follows Bitcoin, why ETH could go up to $4K
If exits are something to cross, the general sentiment appears to be bullish and institutional investors who get involved can help with the huge price that drives cryptocurrencies to break major resistance lines.