More than $500 million worth in Ethereum ($ETH) was withdrawn from cryptocurrency exchanges earlier this week, as traders sought to hold onto their crypto in expectation of a bullish price movement.
According to data supplied by IntoTheBlock, a cryptocurrency market research firm, 180,000 ETH was taken from exchanges on Tuesday, this figure reflects the greatest aggregated exchange outflow of ETH since October. At the time, the ETH outflow coincided with a 15% spike in the cryptocurrency’s price within 10 days.
Similarly, ETH’s price has risen in the aftermath of the recent huge outflow. ETH, which was trading at around $2,500 on March 15, has subsequently risen to $2,934 at the time of writing. This represents a 17 % growth over the previous week, making Ethereum, along with Avalanche (AVAX), the only top 10 cryptos by market cap to see double-digit percentage gains.
Chainalysis data, a blockchain data platform, appears to confirm IntoTheBlock’s study. It predicts that up to 352,317 ETH might have left exchanges on the same day, despite the fact that the firm provides a fairly broad range for its data set. It’s worth noting, however, that Chainalysis hasn’t forecasted such a large outflow in at least six months.
Such outflows, according to the business, would be deemed a bullish market indicator. “Assets held on exchanges increase if more market players desire to sell than buy, and buyers choose to store their assets on exchanges,” it said
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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