Ethereum has recently experienced a surge in withdrawals totaling over $1.2 billion, indicating that large crypto investors, also known as whales, are anticipating a price recovery. These significant withdrawals have led to Ethereum balances on centralized exchanges dropping to their lowest levels since 2016.
According to crypto analyst Ash Crypto, there has been a noticeable increase in the amount of ETH being withdrawn from centralized exchanges by both small and large investors. This surge in withdrawals is the highest trend observed in 2024 so far.
The focus has been on the Coinbase exchange, the largest crypto exchange in the United States, which saw a massive 336,000 ETH withdrawn from its wallets in just 48 hours. This withdrawal trend marked the highest volume of ETH withdrawn from the exchange this year. Additionally, other crypto exchanges also experienced a significant decrease in their ETH balances, with on-chain tracker Santiment reporting an 8.6% drop in total ETH held on centralized exchange wallets in the last two weeks.
These withdrawals have had a substantial impact on exchange balances, causing them to plummet to their lowest levels in eight years. This suggests that investors are choosing to hold onto their Ethereum coins rather than sell them, which is a bullish indicator for the price of Ethereum.
The withdrawal of Ethereum from exchanges is seen as a positive sign, as it indicates that investors are confident in the future price of ETH. Analysts like Ash Crypto believe that with the upcoming trading of Spot Ethereum ETFs in 2024, the price of ETH surpassing $10,000 is only a matter of time.
Currently, the price of ETH is closely following the trend of Bitcoin and has rebounded above $3,500 after briefly dropping below this support level. However, on a weekly chart, ETH continues to show a decline of 7.88%, according to data from CoinMarketCap.
In conclusion, the recent surge in Ethereum withdrawals from exchanges is a strong indicator of investor confidence in the future price of ETH. As more investors choose to hold onto their Ethereum coins, it is likely that the price of ETH will continue to rise, potentially reaching new highs in the near future.