Ethereum Withdrawals From Exchanges Top 260,000 ETH – What This Means For Price
27 April 2024 - 3:00AM
NEWSBTC
Ethereum withdraws from centralized exchanges have ramped up over
the last week, suggesting a direction for investor sentiment during
this time. Given the sheer volume of ETH withdrawn from these
exchanges, it is prudent to try to understand what this could mean
for the crypto’s price. 260,000 ETH Leaves Exchanges Amid the
uncertainty that has plagued the crypto market, Ethereum investors
are making moves to secure their positions for better price
prospects. Pseudonymous crypto technical analyst Titan of Crypto
took to X (formerly Twitter) to share what Ethereum investors are
doing about their holdings right. Related Reading: Bitcoin Bears
Risk Losing $7.2 Billion If BTC Price Reaches This Level The post
revealed that these investors have been withdrawing large amounts
of ETH from centralized exchanges. In the one week period that was
tracked, the report found that a total of 260,000 ETH were
withdrawn from exchanges, which was worth almost $800 million at
the time. #Altcoins Crypto exchanges witnessed an outflow of over
260,000 #ETH equivalent to more than $781 million within the past 7
days. It’s time for #Ethereum shine. ✨🌕 pic.twitter.com/jT1aocjvbI
— Titan of Crypto (@Washigorira) April 24, 2024 Now, exchange
deposits and withdrawals are important for any cryptocurrency
because it can often tell how investors are looking at that coin
and what they are doing with their holdings. In the case of large
deposits to centralized exchanges, it can be very bearish for the
price because investors often deposit their coins in order to sell
them as exchanges provide deep liquidity. In contrast, withdrawals
from exchanges suggest that investors are not looking to sell their
ETH. Rather, they are accumulating the coins to wait for better
prices before selling. Naturally, this is bullish for the Ethereum
price as a diminished selling pressure gives room for the price to
recover. In this case, the withdrawals are bullish or the Ethereum
price, as investors continue to accumulate. It also signals that
investors are expecting a price breakout, and as the withdrawals
ramp up, demand could surpass supply, leading to a surge in price.
Ethereum Headwinds Still Negative Ethereum, while currently seeing
some positive activity from investors, has still not turned
completely bullish. For one, there has been a significant decline
in its daily trading volume. According to data from Coinmarketcap,
Ethereum’s trading volume is down approximately 20% in the last
day. Related Reading: Renowned Economist Reveals What Will Happen
If Bitcoin Can’t Hold $60,000 This decline in volume suggests a
declining interest from investors to actually trade the coin. As
such, its price may be negatively affected as attention begins to
shift elsewhere, with investors looking for better prospects.
Nevertheless, the cryptocurrency still looks bullish for the long
term. Ethereum continues to closely mirror the price performance of
Bitcoin, which is expected to go on a bull run following the
successful completion of its fourth halving event. For now,
Ethereum continues to struggle to hold above $3,100 with small
gains of 0.18% in the last day. Over the last month, it has
suffered multiple crashes, registering a 12.36% loss in the last 30
days. ETH price struggles to hold $3,100 support | Source: ETHUSD
on Tradingview.com Featured image from Investopedia, chart from
Tradingview.com
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