Ethereum started Oct. 31 at $2,658 and tried continuing its uptrend but registered limited success. The bulls successfully kept prices above $2,600 for most of the session but lost the bears, staging a massive selloff.
The apex altcoin is trading at $2,505 at the time of writing. ETH is down by almost 6% and shows no signs of halting the declines. The most recent drop caught many unaware and left them wondering why it happened. Onchain data holds the answer to this question.
Negative Coinbase Premium
Ethereum is experiencing a massive outflow at the time of writing. One point of funds exit is ETFs. Data from SoSoValue showed declining interest in this instrument, as inflow exceeded $4 million during the previous intraday session, significantly lower than Tuesday’s. The fund premium is negative as outflows increase on spot exchange-traded funds and other Ethereum products.
Spot traders also join the bearish frenzy massively, adding to the ongoing selling pressure. The US market is currently bearish as investors take profit, which is why the Coinbase premium is negative. However, the situation is not limited to this region, as the Korea premium is negative due to massive selling congestion.
Exchanges have seen a notable increase in deposits over the last 24 hours. The netflow shows a significant rise in ETH entering these trading platforms. Due to this ongoing trend, exchange reserves have slightly increased.
Nonetheless, the derivative market sees significant activity. Traders lost over $33 million over the last 24 hours, with the bulls making up for most of it. Over 49 million traders lost their positions. The bears are grinning as more sell orders are fulfilled. Nonetheless, funding rates increased as the bulls struggled to keep their positions open. Open interest surged by 92%.
The sudden increase in selling volume is surprising, as no macro data hints at it. Nonetheless, the previous surges pointed to a possible change in the market trajectory.
