When the whole crypto market was bleeding, only three chains, including Ethereum, BNB Chain, and Arbitrum, saw inflows. Around $2.3 billion flowed into Ethereum in just 24 hours, proving that during times of uncertainty, funds flow into reliable chains.
With the prevailing geopolitical tension in the Middle East, the crypto market has taken a hit. Bitcoin crashed from $75K to $67K, while Ether crashed to $2,030 from $2,365. Despite the whole crypto market crashing, traders have been cautious about where they park their funds.
Funds leak from SOL, XRP, and AVAX into ETH, BNB, and ARB
According to a researcher, Leon Waidmann, investors are confident in having their funds on three main chains, which include BNB Chain, Arbitrum, and Ethereum. Ethereum has been the most preferred option among investors, as they saw more than $2.3 billion in inflows within the last 24 hours.
Investors pulled out all the funds that they had on chains like Solana, XRP, Avalanche, and TON and dumped them on the above-mentioned chains, with the majority ending on Ethereum.
Despite the on-chain metrics looking very good, Ethereum’s price has crashed below the 50-day moving average, a short-term indicator. However, ETH is still maintaining its macro uptrend by making higher lows.
On the technical side, the relative strength index indicator, which signals oversold and overbought market conditions, reads a value of 44, which is neutral. As such, there appears to be no immediate price action that could dismantle the macro uptrend.
75% of ETH is leveraged on Binance
However, there is one major hurdle that could break or make Ethereum prices. For instance, more than 75% of the Ethereum on Binance has been leveraged. Leverage indicates that traders are taking out loans to maintain a larger position. Although this multiplies the position, it also, on the other hand, increases the losses and the gains.
With so much leverage, a small price change can trigger a giant loss. Although ETH is holding this macro uptrend, there is a high chance that it could lose this level if there is a small price change.
