ethereum has seen a series of notable withdrawals that suggest crypto whales are expecting a recovery in price. These large withdrawals have caused eth balances on centralized exchanges to fall to their lowest level since 2016.
336,000 eth withdrawn from exchanges
crypto analyst Ash crypto turned to x (formerly twitter) to x.com/Ashcryptoreal/status/1801231852193149366″ rel=”nofollow”>reveal a notable change in the amount of eth currently held on centralized exchanges. In particular, there has been a marked increase in withdrawals from small and large investors alike, leading to the largest withdrawal trend of 2024 yet.
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The report focuses on withdrawals from the Coinbase exchange, which is the largest crypto exchange in the United States. The uptick in the withdrawal trend saw a whopping 336,000 eth withdrawn from the exchange's wallets in just 48 hours. This translates into the exchange's highest withdrawal trend so far this year.
However, Coinbase was not the only crypto exchange severely affected by ethereum withdrawals, as cumulative exchange addresses saw their eth balances drop sharply. Like the Santiment chain tracker x.com/santimentfeed/status/1801370642811654633″ rel=”nofollow”>revealed In one report, the total eth held in centralized exchange wallets has fallen by 8.6% in the last two weeks alone.
These withdrawals have greatly impacted foreign exchange balances, causing them to fall to their lowest point in 8 years. This means that the last time currency balances were this low was in 2016, three bull markets ago.
Will this drive ethereum price to $10,000?
Naturally, ethereum's withdrawal from exchanges is bullish as it is a trend that suggests investors are choosing to hold onto their ethereum coins rather than sell them. If the coins moved in the other direction and were deposited on exchanges, the price would have been bearish as it meant investors were looking to offload their holdings to make profits.
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crypto analyst Ash crypto shares the sentiment that withdrawals are bullish for the price. According to the analyst, since ethereum Spot ETFs will begin trading in 2024, in addition to this, it means that the price of eth above $10,000 is only a matter of time.
Currently, the price of eth is closely following the trend of bitcoin. It has recovered above $3,500 once again after initially falling below this support level on Thursday. However, it continues to rack up losses on the weekly chart, with CoinMarketCap data showing a drop of 7.88%.
Featured image created with Dall.E, chart from Tradingview.com
