Ethereum Sees $1 Billion Exchange Outflow Alongside Bitcoin
Ethereum witnessed On-chain activity surges Over the past week, data has shown an accumulation trend on cryptocurrency exchanges. About $1 million worth of ether was withdrawn from cryptocurrency exchanges last week, according to data from the IntoTheBlock on-chain analytics platform. This shift shows that investors are adopting a holding strategy even as Ethereum price consolidates below $3,200.
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It is worth noting that the last time Ethereum experienced such a large outflow was in May 2023. Heavy outflows of Ethereum from exchanges could indicate traders are anticipating a price increase and moving their holdings into private wallets.
A look at Ethereum’s $1 billion outflow
IntoTheBlock’s “aggregated exchange net flow” data highlights significant outflows of Ethereum from cryptocurrency exchanges. This indicator follows the total number of assets entering a cryptocurrency exchange minus the total number of assets leaving and is useful for determining bullish sentiment among traders. High outflows indicate accumulation behavior as people buy on exchanges and withdraw them to wallets.
according to to metricthe aggregation exchange’s net flow in the past 24 hours has seen a negative change of 59,240 ETH. This pattern is not occurring in isolation, but is part of a larger trend that unfolds throughout the week. IntoTheBlock highlighted this ongoing behavior on social media platform X, drawing attention to Ethereum’s net outflows from exchanges reaching $1 billion per week.
Interestingly, this movement is not unique to Ethereum. Leading cryptocurrency Bitcoin has experienced a similar trend, with net weekly transaction outflows matching those of Ethereum at $1 billion each. This similar behavior is indicative of the broader market sentiment, with major cryptocurrencies being withdrawn from exchanges and all traders anticipating a bull run ahead.
Both Bitcoin USD and $ETH Exchanges experienced massive outflows this week, with net outflows exceeding $1 billion.
The last time outflows were this high was in May 2023 pic.twitter.com/tRngqN4fPM
— IntoTheBlock (@intotheblock) November 15, 2024
What’s next for Ethereum?
Ethereum’s correction is quite obvious since it reached On November 12, the price was $3,420. In particular, Ethereum fell to $3,018 as Ethereum tokens flooded into cryptocurrency exchanges. Ethereum price manages to rise despite apparent 11% pullback Holding above $3,000 support.
This drop appears to have given bulls another opportunity to buy more ETH. Now that the price floor seems to have been established at $3,000, we can expect Ethereum price to start a new upward trend this week.
As of this writing, Ethereum is trading at $3,152, up 1.5% in the past 24 hours, suggesting early signs of recovery. The current price action has Ethereum forming a descending wedge pattern that can break out on either side.
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If the pattern breaks to the upside, Ethereum may resume its bullish trajectory and retest the $3,400 resistance in the coming days. Conversely, a break below could trigger a deeper decline that could push the price towards another support area at $2,810.
Featured image from The Guardian, chart from TradingView