This article is also available in Spanish.
ethereum has witnessed a huge increase in chain activity last week, with data showing an accumulation trend for crypto exchanges. According to on-chain analytics platform IntoTheBlock, around $1 million worth of Ether was withdrawn from crypto exchanges last week. This change suggests that investors are adopting a holding strategy even as ethereum price consolidates below $3,200.
Related reading
Notably, the last time ethereum had outflows of this magnitude was in May 2023. The mass exodus of eth from exchanges could indicate that traders are anticipating higher prices and moving their holdings to private wallets.
Examining ethereum's Billion Dollar Outflow
ethereum's notable exit from crypto exchanges is highlighted in IntoTheBlock's 'Aggregate Exchange Net Flow' data. This metric, which tracks the total number of assets entering crypto exchanges minus those exiting, is useful in determining bullish sentiment among traders. A high outflow indicates hoarding behavior as people buy on exchanges and withdraw to their wallets.
According <a target="_blank" href="https://app.intotheblock.com/coin/eth/deep-dive?group=exchanges&chart=net-flows” target=”_blank” rel=”nofollow”>to the metricThe net flow of exchanges added in the last 24 hours presents a negative change of 59,240 eth. This pattern is not an isolated event but part of a broader trend that has developed throughout the week. IntoTheBlock highlighted this continued behavior on social media platform x, drawing attention to ethereum's weekly net outflow from exchanges reaching $1 billion.
Interestingly, this move is not exclusive to ethereum. bitcoin, the leading cryptocurrency, has also seen a similar trend, with its weekly net exchange outflow mirroring that of ethereum by $1 billion. This parallel behavior suggests a broader market sentiment in which major cryptocurrencies are being withdrawn from exchanges and traders are generally anticipating a bull market ahead.
<blockquote class="twitter-tweet”>
Both <a target="_blank" href="https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc and <a target="_blank" href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth This week there were significant outflows from the stock markets, and net outflows from both exceeded $1 billion.
The last time departures were this high was in May 2023. pic.twitter.com/tRngqN4fPM
– IntoTheBlock (@intotheblock) <a target="_blank" href="https://twitter.com/intotheblock/status/1857380774451798449?ref_src=twsrc%5Etfw” rel=”nofollow”>November 15, 2024
What's next for ethereum?
ethereum Has Retraced Quite Noticeably since it arrived $3,420 on November 12. Notably, ethereum fell to $3,018 as ethereum tokens flooded crypto exchanges. Despite the apparent 11% correction, ethereum price has managed stay above support at $3,000.
The drop appears to have given the bulls another opportunity to load up more eth. Now that the price floor appears to have been set at $3,000, we can expect ethereum price to start a new uptrend this week.
At the time of writing, ethereum is trading at $3,152, reflecting a 1.5% gain in the last 24 hours.<a target="_blank" href="https://bitcoinist.com/ethereum-uptrend-resumes-as-key-support-holds/” target=”_blank” rel=”nofollow”> hinting at early signs of recovery. The current price action has Etherum forming a falling wedge pattern, which can break out either side.
Related reading
If the pattern breaks to the upside, ethereum may resume its bullish trajectory and retest the $3,400 resistance level in the coming days. Conversely, a break lower could trigger a deeper decline, which could push the price towards another support zone at $2,810.
Featured image from The Guardian, chart from TradingView
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
