Ethereum Exchange Withdrawals Reach 2-Month High as $1.4 Billion Leaves Crypto Markets: What Does This Signify?
Recent reports have unveiled a significant movement of Ethereum (ETH) tokens from various cryptocurrency exchanges. On-chain data from IntoTheBlock shows that more than $1.4 billion worth of Ethereum has been withdrawn from exchanges. This massive outflow of ETH indicates a potential shift in investor behavior.
Massive ETH Outflows from Exchanges
IntoTheBlock, a crypto analytics platform, reported that over $1.4 billion worth of Ethereum was recently transferred out of cryptocurrency exchanges. This large-scale movement typically occurs when investors purchase a cryptocurrency from an exchange and move it to their private wallets instead of leaving it on the centralized exchange.
Given the substantial amount of ETH involved, investors may be opting to retain their assets rather than sell them. Data from IntoTheBlock shows that approximately 74% of ETH investors have been holding onto their assets for over a year, indicating a common trend among investors to hold their assets.
This recent surge in Ethereum outflows from exchanges echoes a similar event in November 2024. During that time, Bitcoin (BTC) and Dogecoin (DOGE) saw significant market gains following Donald Trump’s victory in the US Presidential elections.
Contrary to Bitcoin and Dogecoin’s impressive gains, Ethereum struggled to surpass resistance levels and reach new highs. Despite ETH’s current volatility, investors seem to be holding onto their assets rather than selling them off to prevent potential losses, potentially anticipating a future price increase.
Confirming the substantial ETH outflows from exchanges, CryptoQuant highlighted a decrease in selling pressure in the Ethereum market. The blockchain analytics platform revealed that while inflows and outflows have slightly increased, net flows remain negative.
According to IntoTheBlock, inflows have risen by 43.07% in the past week, while outflows have surged by 57.35%. The netflow of large ETH holders has decreased by 26.35% in the past week and by 47.60% in the last 30 days.
Interestingly, Ethereum Spot ETFs have also experienced significant outflows, with Wu Blockchain reporting a total net outflow of $68.47 million.
Analyst’s Negative Ethereum Price Prediction
More Crypto Online (MCO), a crypto community, has shared a bearish Ethereum price forecast, predicting a direct decline following the third wave of the Elliott Wave theory. The analyst anticipates Ethereum to remain in its current consolidation phase as Wave 2 unfolds.
The analyst has outlined potential targets for the projected decline in Wave 3, with significant levels at 100%, 123.6%, and 138%. If Ethereum follows this pattern, its price could drop to $2,841, $2,660, and $2,555, respectively.
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