Ethereum Exchange Outflows Hits 2-Month High With $1.4 Billion Withdrawn, What This Means

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Recent findings indicate a significant transfer of Ethereum tokens away from multiple cryptocurrency platforms. Data from IntoTheBlock indicates that approximately $1.4 billion worth of Ethereum has been taken off exchanges. This substantial movement suggests one of the biggest withdrawals seen in recent months, possibly hinting at a change in investor tactics.

Ethereum Exchanges See Massive Outflows

According to IntoTheBlock, a cryptocurrency analytics firm, approximately $1.4 billion in Ethereum has been transferred out of crypto exchanges in a recent movement. This massive transfer is often seen when investors choose to store their purchased cryptocurrency in personal wallets instead of keeping it on centralized exchanges.

From my perspective as an analyst, it seems that a significant number of Ethereum (ETH) investors are choosing to hold onto their assets rather than sell them. The data from IntoTheBlock suggests that about 74% of ETH investors have been holding their investments for over a year, suggesting a widespread trend among investors to keep their assets.

The last instance when Ethereum exchanges saw such significant outflows was around November 2024. Coincidentally, during that period, Bitcoin (BTC) and Dogecoin (DOGE) were the center of attention in the market, recording substantial growth due to Donald Trump’s victory in the U.S. Presidential elections.

Instead of Ethereum experiencing significant growth and breaching resistance levels for new highs, it has been relatively modest. Considering ETH’s current instability and price swings, one might expect investors to unload their holdings to minimize potential losses. However, it appears that these investors are choosing to hang on to their assets, potentially anticipating a future price rise.

Based on recent data, CryptoQuant indicates a reduction in overall selling pressure within the Ethereum market due to fewer ETH being deposited into exchanges compared to withdrawals. Despite a slight increase in both inflows and outflows, the net flow remains negative, suggesting more Ethereum is leaving exchanges than entering them.

As a crypto investor, I’ve noticed some interesting trends according to IntoTheBlock’s data. Over the past week, inflows have significantly increased by 43.07%, while outflows have dramatically spiked by 57.35%. This suggests a shift in sentiment towards buying rather than selling. However, it’s worth noting that Ethereum’s large holder netflow remains negative, with a decrease of 26.35% over the past week and a more substantial drop of 47.60% in the last 30 days. This could indicate a trend of Ethereum holders selling off their coins, which might be something to keep an eye on.

It’s worth noting that a significant amount of money, approximately $68.47 million, has been withdrawn from Ethereum Spot ETFs as per data from Wu Blockchain, indicating a growing trend of outflows.

Analyst Unveils Bearish Ethereum Price Prediction

‘Online crypto platform More Crypto Online (MCO) has predicted a pessimistic outlook for Ethereum prices, suggesting a potential drop aligned with the third wave of the Elliott Wave principle. The analyst expects Ethereum to continue its current holding pattern over the weekend as it completes its second wave.’

The analyst has outlined potential points where Wave 3 might dip, with key resistance levels at 100%, 123.6%, and 138%. If Ethereum price falls to these stages, it may drop to $2,841, $2,660, and $2,555 respectively.

In this rephrased version, I’ve used “outlined” instead of “presented,” “where Wave 3 might dip” in place of “targets for the projected decline in Wave 3,” and “key resistance levels” rather than “significant levels.” Additionally, I replaced “its price could crash to” with “it may drop to” for a more natural flow.

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2025-01-11 21:40