Ethereum has seen a number of notable drawdowns indicating that cryptocurrency whales are anticipating a price rebound. These large withdrawals caused ETH balances on centralized exchanges to fall to their lowest level since 2016.
336,000 Ethereum withdrawn from exchanges
Cryptocurrency analyst Ash Crypto has moved to X (formerly Twitter). reveal A notable change in the amount of ETH currently on centralized exchanges. It is worth noting that there has been a notable increase in withdrawals by both small and large investors, resulting in the highest withdrawal trend for 2024 so far.
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The report focuses on withdrawals from Coinbase, the largest cryptocurrency exchange in the United States. The surge in the withdrawal trend saw a massive 336,000 ETH withdrawn from the exchange's wallets in just 48 hours. This translates into the highest trend of withdrawals from the stock exchange so far this year.
However, Coinbase wasn't the only cryptocurrency exchange hit hard by Ethereum withdrawals, as accumulated exchange addresses saw their ETH balances drop sharply. As the on-chain tracker Santiment open In a report, the total ETH held in central exchange wallets has fallen by 8.6% in the past two weeks alone.
These withdrawals greatly affected exchange balances, causing them to fall to their lowest level in 8 years. This means that the last time exchange balances were this low was in 2016, three bull markets ago.
Will this push the price of Ethereum to $10,000?
Naturally, withdrawing Ethereum from exchanges is bullish since this is a trend indicating that investors are choosing to hold their Ethereum coins rather than sell them. If the coins had moved in the other direction and been deposited on exchanges instead, the price would have been bearish because it would mean investors were looking to unload their holdings for a profit.
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Cryptocurrency analyst Ash Crypto shares the sentiment that the drawdowns are bullish for the price. According to the analyst, with Spot Ethereum ETFs set to start trading in 2024 plus, it means that the ETH price trading above $10,000 is just a matter of time.
Currently, ETH price still follows Bitcoin's trend closely. It has recovered above $3,500 again after initially falling below this support level on Thursday. However, it continues to suffer losses on the weekly chart, with CoinMarketCap data showing a decline of 7.88%.
Featured image created with Dall.E, chart from Tradingview.com