Netflow paints a troubling picture for Ethereum investors

Despite a 13.06% decline over the month, Ether has shown the first signs of consolidation this week as it has barely seen any price change. However, the net flow observed through December 17th paints a more worrying picture for Ethereum investors.

Capital from ether

As the week ended on December 17th, the crypto market had its largest outflow ever, totaling $ 142 million. In fact, this is the first time in over 17 weeks that the overall outflow of crypto assets has turned negative.

Standout this week is Ethereum with an outflow of $ 63 million, making things worse for holders.

Throughout the month and through to the last week, net inflows maintained a balance between inflows and outflows, limiting Ethereum’s inflows to just $ 3.6 million. In fact, the current month’s Polkadat outflow (MTD) is higher than Ethereum’s at $ -3.8 million.

Digital asset net cash flow for the week ending December 10th | Source: CoinShares

Although Bitcoin’s outflow was $ 26 million higher than Ethereum’s last week, performance over the past few weeks has helped its MTD maintain minimal losses.

Digital asset net cash flows for the week ending December 17th | Source: CoinShares

This is not the case with Ethereum, as now, for the first time since July, more than six million addresses have lost money.

Additionally, due to the potential for further losses, investors are now becoming more cautious, including whales. Its trading volume topped $ 10 billion on December 14, recording its highest level since January 2018, after the price of ether fell 8.5% the previous day (December 13).

Ethereum whale movement | Source: Santiment

So with the biggest option expiration of the year, expect ETH to recover soon.

While 102,000 contracts are urging Ethereum to close above $ 5,000, another 122,6,000 and 119,5,000 investors are looking for closings of $ 10,000 and $ 15,000, respectively.

Ethereum option contract | Source: Skew

While $ 5,000 doesn’t seem viable at the moment, if Ether can bounce back, $ 5,000 is the next target, as reaching $ 10,000 and $ 15,000 is too far away. To hit $ 5,000, Ether must gain 23.69% in the next 10 days.

Ether price promotion | Source: TradingView

So it is safe to say that even if ether prices recover in the future, many investors will suffer losses.

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