Significant ETH outflows from major exchanges coincide with a surge in Ethereum's price, indicating growing investor interest. Whales actively staking and adopting long-term strategies.
As per Lookonchain's data, a platform specializing in on-chain analytics, Ethereum (ETH) whales have executed withdrawals totaling around $64.2 million worth of ETH from major exchanges.
This substantial transfer of funds aligns with a notable surge in the price of ETH, signaling a growing interest in the cryptocurrency.
Positive Signals from Ethereum Whales' Activities
Lookonchain's analysis reveals that a significant portion of the ETH supply has transitioned from exchange wallets to custodial wallets. Specifically, the on-chain analytics platform notes that an Ethereum address identified as 0x8B94 withdrew 14,632 ETH, valued at approximately $45.5 million, from Binance.
The platform highlights that these funds have been actively staked within a six-day period, indicating a deliberate shift towards adopting long-term investment strategies.
Furthermore, Lookonchain points out that two newly identified whale wallets have moved 6,000 ETH, equivalent to $18.7 million, from Kraken to undisclosed wallet addresses in the last two days.
This observed trend suggests a heightened interest among major investors in securing substantial amounts of Ethereum outside of exchange platforms, possibly positioning for long-term appreciation of the asset.
Supporting this trend is a recent analysis from CryptoQuant’s Quicktake, highlighting a discernible pattern in Ethereum withdrawals from exchanges over the past few weeks. The analysis relies on the 'Exchange Reserve' metric, monitoring the quantity of ETH tokens held in centralized exchange wallets.
When the value of this metric increases, it indicates that investors are depositing more assets than withdrawing, signaling an accumulation of Ethereum reserves. Conversely, a decline in the metric suggests a net outflow of assets from these platforms.
According to CryptoQuant's data, over 800,000 ETH, approximately $2.4 billion, has left cryptocurrency exchanges since the beginning of the year. Such substantial outflows typically indicate a surge in investor confidence in the Ethereum network and its native token.
Ethereum’s Positive Price Momentum and Potential Breakout
Meanwhile, Ethereum's price has exhibited bullish momentum, experiencing a 5.5% increase in the past week and successfully reclaiming the crucial $3,000 mark.
Renowned financial expert Raoul Pal has brought attention to Ethereum's potential for a significant breakout, highlighting a 'dual-chart pattern' observed on the ETH/BTC chart.
Pal emphasizes a 'mega wedge' pattern alongside an inner descending channel, indicating a consolidation phase with bullish potential.