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Ethereum Is Still Under Pressure as $800 Million ETH Flowed to Exchanges

Thu, 06/02/2022 - 08:38
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Arman Shirinyan
Ethereum remains under selling pressure despite positive price performance previously
Ethereum Is Still Under Pressure as $800 Million ETH Flowed to Exchanges
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The most recent recovery of Ethereum might not reflect the true intentions of traders and investors as we see the massive inflow of ETH on centralized exchanges. The positive netflow on an asset usually shows a prevalence of selling over buying.

Reportedly, $822 million were sent to various exchanges by Ethereum traders despite the positive price performance on the asset in the previous days. The large inflow reflected on the chart as Ethereum has lost around 10% of its value in the last two days.

ETH Chart
Source: TradingView

Following the retrace, Ether has failed to break through the upper border of a descending triangle, plunging down possibly in the upcoming days or weeks. Previously, Ethereum bounced off the $1,700 support level.

Beacon chain reorganization strikes fear

Previously, the test network of Ethereum, Beacon chain, faced a serious issue with block reorganization, which could have caused a replay of all DEX-trades, oracle updates and liquidations that have happened in the last seven weeks.

Since the issue occurred on the test network, there was no harm or damage done to the mainnet directly. But at the same time, if something like this would have happened in a major network, the damage by the bug would have been reflected on users directly, causing millions of losses.

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Ahead of a switch to the proof-of-stake consensus mechanism, the block reorg issue is not a good look for the network and all Merge advocates.

Nevertheless, some Ethereum developers believe that there will be no issues like this in the future when the realization of various updates and fixes on the network will be taken more seriously.

At press time, Ethereum trades at $1,825 and has gained around 0.5% to its value in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.