7.8M Ethereum Leaves Binance In Two Months—What Does This Mean for ETH?
The Ethereum market has undergone significant changes recently, Large outflows of funds from centralized exchanges sparking discussion about the recent trend of cryptocurrencies.
Among them, Ethereum has fallen 2.4% in the past 24 hours, and is currently trading at $3,858, down 21.1% from its historical high of $4,878 in 2021.
Ethereum withdrawals on Binance exceed 7.8 million ETH
data Data from CryptoQuant shows that approximately 20.8 million ETH have been withdrawn from centralized exchanges in the past two months, a trend reminiscent of the 2021 bull market. Binance has played a central role in this movement, holding over 7.8 million ETH and accounting for 33-39% of total outflows.
As CryptoQuant analyst Crazyblockk noted, these outflows may indicate investors accumulating ETH for long-term holding or staking purposes. The analyst added:
These large outflows from Binance demonstrate the platform’s continued impact on the cryptocurrency market, particularly in balancing the supply and demand of Ethereum.
It’s worth noting that Binance’s influence is particularly evident as its global user base has reached 250 million, with deposits reaching a record $21.6 billion this year, according to Crazyblockk.
Binance’s massive outflows are consistent with bullish market sentiment, as large-scale withdrawals tend to indicate investor confidence. These movements indicate that Ethereum holders Move assets off exchange.
A reduction in the supply of ETH available on exchanges may result in rising price pressureif demand remains consistent or grows.
Ethereum market performance and outlook
Ethereum has so far struggled to see its price rise significantly since the latest cryptocurrency market bull run began a few months ago.
While Bitcoin continues to rise almost every month, reaching new all-time highs, Ethereum lacks enough upward momentum to drive its price Breaking through the $4,000 mark.
It’s worth noting that Ethereum’s lackluster performance comes amid Positive developments are being made in the cryptocurrency space Includes the latest news from Germany’s largest bank, Deutsche Bank It is said Develop your own layer 2 (L2) blockchain on Ethereum using ZKsync technology.
Just Released: Deutsche Bank Builds Its Own Layer-2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
— radar
(@RadarHits) December 18, 2024
Regardless of the news, ETH has edged up 2.3% over the past week, a modest performance compared to Bitcoin’s 5% gain over the same period.
Analysts say that further correction in Ethereum price is still possible as a bearish signal recently formed on its chart, suggesting that it may drop to 3,400 points.
$ETH A bearish double top has formed, with the RSI showing bearish divergence and the MACD crossover confirming the trend.
A short-term correction could take it to $3,400, with the main support levels at $3,200 and $3,000. #Ethereum #cryptotrading #eth pic.twitter.com/iWaPh1vwrr
— Crypto Vulture Trader
(@crypto_vulture1) December 18, 2024
Featured image created using DALL-E, chart from TradingView
