Recent data has shown a significant increase in the number of notable withdrawals of Ethereum from centralized exchanges. This trend suggests that crypto whales are expecting a recovery in price, leading to a decrease in the ETH balances on exchanges to their lowest level in years. The uptick in withdrawals has been observed across both small and large investors, marking the highest withdrawal trend of 2024 so far.
The withdrawals from exchanges, particularly from Coinbase, the largest crypto exchange in the United States, have been substantial. In just 48 hours, a staggering 336,000 ETH were withdrawn from Coinbase’s wallets, setting a new record for the highest withdrawal trend this year. Other exchange addresses have also seen a drastic decline in their ETH balances, with on-chain data indicating an 8.6% decrease in the total ETH held on centralized exchange wallets in the last two weeks alone.
The plummeting exchange balances are a clear indication that investors are opting to hold onto their Ethereum coins rather than sell them. This bullish sentiment is further supported by the fact that the last time exchange balances were this low was in 2016, during a previous bull market cycle. The trend of Ethereum being withdrawn from exchanges is seen as a positive sign for the price of the cryptocurrency, as it signifies strong investor confidence in its long-term potential.
Crypto analyst Ash Crypto shares the optimism surrounding the Ethereum withdrawal trend, suggesting that the impending launch of Spot Ethereum ETFs in 2024 could further boost the price of ETH, potentially pushing it above $10,000 in the near future. Despite some price volatility, with Ethereum recently recovering above $3,500 and following the broader market trend set by Bitcoin, the overall market sentiment remains positive.
The growing Ethereum withdrawal trend is a clear indicator of bullish sentiment among crypto whales and investors. The decreasing ETH balances on exchanges and the increasing demand for holding onto Ethereum coins point towards a potential price surge in the near future. As the market continues to evolve and new investment opportunities emerge, Ethereum’s position as a leading cryptocurrency remains strong, fueled by investor confidence and the belief in its long-term value.
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