The current ETH price chart could indicate the formation of a bearish pattern known as the “double top”. This means that 100,000 ETH have flowed into Binance.
According to a chart by CryptoQuant, the second largest cryptocurrency formed a bearish pattern on the chart yesterday.
The source: KryptoQuant
As the graphic above shows, this popular pattern is known as the “Double Top”. Historically, the formation of such highs has been a bearish signal.
However, the “double top” pattern cannot be confirmed until the price falls below the support level marked by the decline between the two tops.
It appears that the price fell to $ 3.2,000 immediately after forming two tops, well below the $ 3.3,000 support. In most cases, such a decline confirms the completion of a bearish pattern. In the case of ETH, however, the price has moved above the support and is currently trading at $ 3,466.
After the double top event, the support becomes resistance to keep the price below it for a while. The ETH rally could just be a shoulder formation and the downward trend could still be active.
Even if the opposite may be the case, there is another bearish signal …
Around the same time as the double top was formed, the net flow indicator for Ethereum shows that around 100,000 ETH have flowed into the Binance exchange.
“Net flow” indicates the amount of net money flowing into or out of exchanges. It is calculated simply by taking the difference between the input and output currents.
If the indicator receives a negative value, it means that more ETH is moving outwards than inwards, while a positive value shows the opposite.
Source: CryptoQuant
The top on the chart shows that around 100,000 ETH went into the exchange and the chain data confirms that it has found its way into Binance.
Such high spikes often mean that investors are facing strong selling pressure and are therefore moving coins to the exchanges for offloading.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
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