Over $500 Million Ethereum (ETH) Leaving CEXs as Market Prepares for Impulsive Move: Data

Data from IntoTheBlock revealed that investors withdrew approximately 500 million eth from centralized exchanges last week, the highest amount the asset has seen since February.

$500 million of eth leaves CEX

He x.com/intotheblock/status/1781298658945728786″ data-wpel-link=”external” target=”_blank”>withdrawal of large amounts of eth from centralized exchanges indicates investors' confidence in the long-term price trajectory of the asset. Market participants typically withdraw their cryptocurrencies from centralized trading platforms to keep the assets in their private wallets or cold storage in anticipation of higher prices.

Such large withdrawals have been considered an indicator of bullish sentiment and holding attitude among investors. More often than not, eth has posted substantial gains in the weeks following large withdrawals from exchanges.

Anticipation of higher eth prices could be attributed to the approval of ethereum exchange-traded funds (ETFs) in Hong Kong and the recently completed bitcoin halving event, which has historically triggered bullish rallies across the market. .

With huge amounts of eth leaving exchanges, supply could decrease on such trading platforms and high demand from large entities such as spot ETF issuers could drive the price of the digital asset upwards, depending on the laws of economics.

The futures market is primed for an impulsive move

As investors reduce their eth holdings on centralized exchanges, the ethereum futures market shows that it is on the verge of a resurgence of long or short positions. A quick take on CryptoQuant from pseudonymous analyst Shayan ethereum-Ready-For-A-Fresh-Impulsive-Move-The-Futures-Market-Sentiment-Will-A?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=shayantbtc” data-wpel-link=”external” target=”_blank”>revealed that the ethereum market may be on the verge of an impulsive new move north or south.

Shayan explained that futures market sentiment significantly affects price movements because the intensity of long and short positions, as well as the possibility of large liquidations, acts as a catalyst for volatility. This sentiment can be determined by the state of open interest, which indicates the number of open perpetual futures contracts on various cryptocurrency exchanges.

Notably, open interest in ethereum declined during ether's recent drop to $2,900 amid escalating tensions in the Middle East. The drop suggested a drop in activities in the futures market.

“Consequently, the market appears primed for a resurgence of long or short positions, potentially initiating a new and decisive market move in either direction,” Shayan said.

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