Recently, Ethereum has experienced a significant number of large withdrawals from centralized exchanges, indicating that crypto whales are anticipating a price recovery. The amount of ETH held on these exchanges has plummeted to its lowest level since 2016. Ash Crypto, a prominent crypto analyst, highlighted this trend on social media, pointing out the surge in both small and large investors withdrawing their Ethereum from exchanges. This withdrawal trend has reached its peak in 2024, reflecting a growing confidence among investors in the future of Ethereum.
Coinbase, the largest cryptocurrency exchange in the United States, witnessed a massive withdrawal of 336,000 ETH from its wallets within just 48 hours. This surge in withdrawals represents the highest recorded trend of the year. However, Coinbase was not the sole exchange affected by this phenomenon, as other exchanges also saw a significant drop in their ETH balances. On-chain data from Santiment revealed an 8.6% decline in total ETH held on centralized exchange wallets over the past two weeks. This has led to exchange balances reaching their lowest point since 2016, indicating a shift in investor behavior towards holding onto their Ethereum assets.
The withdrawal of Ethereum from exchanges is generally viewed as bullish for the price of the cryptocurrency. This trend suggests that investors are opting to hold onto their ETH rather than sell it, indicating confidence in its future value. Conversely, if there were a significant increase in deposits to exchanges, it would signal bearish sentiment as investors would be looking to offload their holdings for profit. Ash Crypto shares this sentiment, suggesting that the recent withdrawals, combined with the upcoming launch of Spot Ethereum ETFs in 2024, are positive indicators for an ETH price surge towards $10,000.
Despite the bullish signals, the price of Ethereum continues to closely follow the trend of Bitcoin. While it has rebounded above $3,500 after a brief dip below this support level, it still faces losses on the weekly chart. According to CoinMarketCap data, Ethereum has experienced a 7.88% decline in its price. However, the overall market sentiment remains bullish, supported by the growing confidence of whales and investors in the long-term value of Ethereum.