17 November 2024
Ethereum has witnessed a huge surge in on-chain activity in the past week, with data showing an accumulation trend from crypto exchanges. According to on-chain analytics platfrom IntoTheBlock, about $1 million worth of Ether was withdrawn from crypto exchanges last week. This shift suggests that investors are adopting a holding strategy, even as the Ethereum price consolidates below $3,200.
Notably, the last time Ethereum had outflows of this magnitude was in May 2023. The massive exodus of ETH from exchanges could indicate that traders are anticipating higher prices and moving their holdings into private wallets.
Examining The Ethereum $1 Billion Outflow
The notable outflow of Ethereum from crypto exchanges is highlighted by the ‘Aggregated Exchange Netflow’ data from IntoTheBlock. This metric, which follows the total number of assets entering crypto exchanges minus those leaving, is useful for determining the bullish sentiment among traders. A high outflow signals accumulation behavior since people buy on exchanges and withdraw it to their wallets.
According to the metric, the netflow of aggregated exchanges in the last 24 hours comes at a negative 59,240 ETH change. This pattern is not an isolated occurrence but part of a larger trend that has unfolded throughout the week. IntoTheBlock highlighted this ongoing behavior on social media platform X, drawing attention to Ethereum’s weekly net outflow from exchanges reaching $1 billion.
Interestingly, this movement is not exclusive to Ethereum. Bitcoin, the leading cryptocurrency, has also experienced a similar trend, with its weekly exchange net outflow mirroring Ethereum’s at $1 billion. This parallel behavior suggests a broader market sentiment where major cryptocurrencies are being withdrawn from exchanges and traders across the board are anticipating a bullish market ahead.
Both $BTC and $ETH saw significant outflows from exchanges this week, with net outflows for both surpassing $1 billion.
The last time outflows were this high was in May 2023 pic.twitter.com/tRngqN4fPM
— IntoTheBlock (@intotheblock) November 15, 2024
What’s Next For Ethereum?
Ethereum has retraced quite noticeably since it reached $3,420 on November 12. Particularly, Ethereum fell to $3,018 as Ethereum tokens flooded crypto exchanges. Despite the apparent 11% correction, the Ethereum price has managed to hold above support at $3,000.
The decline seems to have given bulls another opportunity to load up more ETH. Now that the price floor seems to have been established at $3,000, we can expect the Ethereum price to kick off a new uptrend this week.
At the time of writing, Ethereum is trading at $3,152, reflecting a 1.5% gain over the past 24 hours, hinting at early signs of recovery. Current price action puts Etherum forming a falling wedge pattern, which can break into either side.
If the pattern breaks out to the upside, Ethereum may resume its bullish trajectory and retest the $3,400 resistance level in the coming days. Conversely, a break to the downside could trigger a deeper decline, potentially driving the price toward another support zone at $2,810.
Featured image from The Guardian, chart from TradingView