Ethereum Panic? CEX Inflows Hit Multi-Month Highs

Another wave of FUD around the possible security status of Ethereum ETHUSD is the key reason behind its “underperformance,” data says. However, passionate holders do not seem to be ready for selling en masse.

Ethereum FUD causes record-breaking ETH inflow to CEXes

In the past week, the Ethereum ETHUSD supply has experienced mixed trends. As the meme coin mania loses steam, the aggregated Ethereum ETHUSD fees dropped by 41%, says leading blockchain data tracker IntoTheBlock.

In this week’s newsletter, we analyze some of the recent FUD against Ethereum. We evaluate ETH’s relative performance in terms of price, its fundamental metrics and the bullish outlook shared by ETH’s long-term investors👇https://t.co/LOJscBi0dF— IntoTheBlock (@intotheblock) March 23, 2024

Such calculations were revealed by IntoTheBlock in its latest On-Chain Insights newsletter.

Also, Ether recorded its largest weekly net inflows into centralized exchanges since September 2022: Scared holders brought $720 million to CEXes.

This week, besides the “regular” rumors about Ether’s security status, some media outlets reported that Ethereum Foundation was being investigated by law enforcers.

Should Ethereum ETHUSD be deemed security in the U.S., the prospects of Ethereum ETF approval might be questioned.

As covered by U.Today, U.S. congresspersons and Coinbase CLO slammed the SEC and its leadership for its failure to protect Ethereum ETHUSD from a regulatory crackdown.

“ETH underperformance is real,” IntoTheBlock says

It is the FUD to blame for Ethereum’s ETHUSD underperformance, IntoTheBlock data says. In the shadow of the marvelous BTC rally, ETH has lagged behind Bitcoin and on a risk-adjusted basis, even behind the S&P 500.

Also, the ratio of ETHBTC is holding just above 0.05, inching closer to its lowest point since June 2022. It should be noted that BTC has already managed to exceed its 2021 high, while the Ethereum ETHUSD upsurge stopped 32% short of the ATH.

At the same time, long-term ETH holders are not ready to sell their coins. The amount of Ethers in wallets that have been holding for over one year continues hitting new highs despite the negative news.