Ethereum Records $1 Billion Outflow from Exchanges, Bitcoin Mirrors Trend
Ethereum has experienced a significant increase in on-chain activity recently, with approximately $1 million worth of Ether withdrawn from crypto exchanges last week. This trend indicates a holding strategy among investors while the Ethereum price remains below $3,200.
The last occurrence of such substantial outflows was in May 2023. The withdrawal of ETH from exchanges suggests that traders anticipate higher prices and are transferring their assets to private wallets.
Examining The Ethereum $1 Billion Outflow
The recent outflow of Ethereum is illustrated by the 'Aggregated Exchange Netflow' data from IntoTheBlock. This metric tracks the difference between total assets entering and leaving exchanges, reflecting traders' bullish sentiment. A high outflow indicates accumulation since users buy on exchanges and transfer assets to their wallets.
The netflow of aggregated exchanges recorded a negative change of 59,240 ETH in the last 24 hours. This trend is part of a larger pattern observed throughout the week, with Ethereum's weekly net outflow reaching $1 billion, as noted by IntoTheBlock on social media.
Bitcoin has also seen a similar trend, with its weekly exchange net outflow matching Ethereum's at $1 billion. This correlation suggests a broader market sentiment where major cryptocurrencies are being withdrawn from exchanges as traders expect a bullish market ahead.
Both $BTC and $ETH saw significant outflows from exchanges this week, with net outflows for both surpassing $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 retraced significantly after reaching $3,420 on November 12, dropping to $3,018 due to an influx of tokens onto exchanges. Despite an 11% correction, Ethereum has maintained support above $3,000.
This decline has provided bulls another chance to accumulate more ETH. With a price floor established at $3,000, expectations for an uptrend this week are increasing.
Currently, Ethereum trades at $3,152, reflecting a 1.5% gain over the past 24 hours. This price action indicates the formation of a falling wedge pattern, which may break either upward or downward.
A breakout to the upside could lead Ethereum to retest the $3,400 resistance level in the coming days, while a downside break could push the price toward a support zone at $2,810.
Featured image from The Guardian, chart from TradingView