Ethereum

Flow

bullish

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum (ETH) has shown signs of recovery but faces potential hurdles due to low demand.</li>
 <li>Increasing exchange reserves and declining interest in ETH could limit its upside.</li>
</ul>
<p>Following a significant sell-off last week, <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum (ETH)</a> has shown some signs of recovery.</p>
<p>However, the recovery might not be smooth due to several factors.</p>
<h2 id="ethereum-s-recovery-and-potential-hurdles">Ethereum’s Recovery and Potential Hurdles</h2>
<p>The cryptocurrency ended September on a bearish note, but the sell pressure eased last Thursday after a 15% retracement.</p>
<p>During the weekend, ETH showed some bullish momentum, recovering 7% from last week’s lows.</p>
<p>Despite the recovery, there are signs that liquidity might be flowing out of ETH.</p>
<p>The Money Flow Indicator (MFI) suggests that the recent rally may be due to weak demand, potentially limiting ETH’s upside.</p>
<h2 id="low-excitement-for-ethereum">Low Excitement for Ethereum</h2>
<p>Declining interest in Ethereum aligns with these findings, hinting that ETH may not be the best option for short-term gains.</p>
<p>On-chain data also shows a sharp increase in ETH exchange reserves, which could lead to more sell pressure.</p>
<p>Data from CryptoQuant reveals that ETH’s exchange flows have slowed down since the start of the month.</p>
<p>For instance, exchange inflows peaked at 621,000 ETH at the start of October, while outflows were slightly lower at 599,778 ETH.</p>
<p>Currently, exchange inflows stand at 86,173 ETH, with outflows slightly higher at over 120,000 ETH.</p>
<p>This indicates a net demand of 33,827 ETH, equivalent to $83.5 million worth of demand.</p>
<p>Despite some demand, the quantity is relatively low, contributing to subdued excitement for the cryptocurrency.</p>

Ethereum: What Could Hinder ETH’s Growth Potential?

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CoinEagle.com

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