ETH Exchange Inflow

Definition ∞ ETH exchange inflow refers to the total volume of Ether transferred from external wallets into cryptocurrency exchange platforms over a specified period. A significant increase in this metric often indicates that holders intend to sell their Ether, potentially signaling heightened selling pressure in the market. Conversely, low inflows can suggest reduced immediate selling intent or a preference for holding assets off-exchange. This on-chain data point provides insights into short-term market sentiment and potential price movements for Ether.
Context ∞ The discussion around ETH exchange inflow centers on its role as a leading indicator for short-term market dynamics and its correlation with price volatility. A key debate involves distinguishing between routine transfers for trading and large-scale movements indicative of strategic selling by major holders. Observing ETH exchange inflow offers crucial context for traders and analysts seeking to anticipate immediate market shifts and adjust their strategies accordingly.