ethereum withdrawals from centralized exchanges have increased over the past week, suggesting a direction for investor sentiment during this time. Given the large volume of eth withdrawn from these exchanges, it is prudent to try to understand what this could mean for the price of the cryptocurrency.
260,000 eth leave exchanges
Amid the uncertainty that has plagued the cryptocurrency market, ethereum investors are taking steps to secure their positions and gain better price prospects. Pseudonymous cryptotechnical analyst Titan of crypto took to x (formerly twitter) to share what ethereum investors are doing regarding their holdings.
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The post revealed that these investors have been withdrawing large amounts of eth from centralized exchanges. In the one-week period it was tracked, the report found that a total of 260,000 eth was withdrawn from exchanges, which was worth almost $800 million at the time.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/Altcoins?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Altcoins
crypto Exchanges Witnessed an Outflow of Over 260,000 twitter.com/hashtag/eth?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#eth equivalent to more than $781 million in the last 7 days.
It's time to twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereum shine. pic.twitter.com/jT1aocjvbI
– Cryptocurrency titan (@Washigorira) twitter.com/Washigorira/status/1783058334171500886?ref_src=twsrc%5Etfw” rel=”nofollow”>April 24, 2024
Now, currency deposits and withdrawals are important for any cryptocurrency because they can often indicate how investors view that currency and what they are doing with their holdings. In the case of large deposits on centralized exchanges, the price can be very bearish because investors usually deposit their coins to sell them, since the exchanges provide great liquidity.
On the contrary, withdrawals from exchanges suggest that investors are not looking to sell their eth. Rather, they are hoarding coins to wait for better prices before selling them. Naturally, this is bullish for ethereum price as lower selling pressure leaves room for the price to recover.
In this case, the withdrawals are bullish or the price of ethereum as investors continue to accumulate. It also indicates that investors are expecting a price breakout and as withdrawals increase, demand could outstrip supply, causing prices to rise.
ethereum Headwinds Remain Negative
ethereum, while currently seeing some positive activity from investors, has not yet turned completely bullish. For one thing, there has been a significant decline in its daily trading volume. According ethereum/” rel=”nofollow”>data According to Coinmarketcap, ethereum trading volume is down approximately 20% in the last day.
This decline in volume suggests dwindling investor interest in trading the coin. As such, its price may be negatively affected as attention begins to divert elsewhere, and investors look for better prospects.
However, the cryptocurrency still looks bullish in the long term. ethereum continues to closely mirror the price performance of bitcoin, which is expected to begin a bull run following the successful completion of its fourth halving event.
For now, ethereum continues to struggle to stay above $3,100 with small gains of 0.18% in the last day. Over the last month it has suffered multiple drops, recording a loss of 12.36% in the last 30 days.
x/BtsJvBt8/” alt=”ethereum price chart from Tradingview.com” width=”3286″ height=”1530″ loading=”lazy”/>
eth price struggles to hold $3,100 support | Source: ETHUSD on Tradingview.com
Featured image from Investopedia, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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