- Ethereum saw inflows of approximately $2.3 billion.
- The rise in ETH price has led to a noticeable increase in short-term liquidation volume.
Ethereum (ETH) has recently experienced significant price fluctuations, triggering massive short-term liquidations and recording record inflows.
Amid these developments, there is speculation that institutions may be preparing for the potential approval of Ethereum-based financial products.
Ethereum sees significant flows to exchanges
AMBCrypto’s analysis of CryptoQuant’s Ethereum inflow charts shows that traders have moved to take advantage of recent price increases.
On May 21, approximately 627,770 ETH (worth over $2.3 billion at approximately $3,789 per ETH) entered exchanges. This was the second largest inflow in the past year.
The largest inflow occurred in March when 648,000 ETH worth approximately $2.3 billion was transferred. At press time, inflows had already exceeded 100,000 ETH.
Source: CryptoQuant
Due to these significant inflows, Ethereum’s Netflow has been positive over the past few days. Netflow indicates that more ETH is coming into the exchange than is going out.
Netflow on May 21st was around 49,000 ETH. This trend has continued with over 5,600 ETH added to Netflow at the time of this writing.
Ethereum shorts see more liquidations.
Another impact of the recent rise in Ethereum price is the surge in liquidation volume.
AMBCrypto’s analysis of liquidation charts shows that short-term traders have experienced significant liquidations over the past few days.
Source: CryptoQuant
On May 20, approximately 20,558 ETH, worth more than $75.2 million, was liquidated, marking the second highest short-term liquidation volume in over a year.
This trend continued on May 21, with 11,600 ETH worth approximately $44 million being liquidated.
Which institutions prepare for ETF approval?
With the price of Ethereum rising recently, speculation is growing that approval of an Ethereum ETF is imminent.
Critics are optimistic about the approval, and some analysts believe agencies are already preparing for it.
CryptoQuant charts showed notable ETH outflows from Coinbase with amounts of approximately -134,000, -120,454, and -133,000 ETH on March 11 and 27, and April 18, respectively.
A similar outflow pattern was observed at Coinbase before the Bitcoin ETF approval was announced in January, suggesting that institutions may still be in a position to receive potential approval today.
Source: CryptoQuant
ETH shows a slight decline
Ethereum surged to around $3,661 after a 19% increase on May 20.
Read Ethereum (ETH) price prediction for 2024-25
This upward trend continued on May 21, with ETH reaching around $3,789 after an increase of 3.50%, reaching a price area last seen in March, according to AMBCrypto’s daily timeframe chart evaluation.
At the time of writing, Ethereum was trading at around $3,749, reflecting a decline of just over 1%.
Source: TradingView