Exchange data revealed a sequel bullish sentiment Ethereum traders. According to IntoTheBlock, $906 million worth of Ethereum was withdrawn from crypto exchanges last week, indicating a holding mentality among investors. This mass exodus of ETH from exchanges could indicate that traders are expecting higher prices and are moving their holdings to private wallets for long-term storage.
The attitude of restraint appeared in the midst of a wider tip of the price of cryptocurrencies across the market and many calls for Ethereum to exceed $4,000 and beyond.
Ethereum sees mass exodus of exchanges
Exchange data generally helps provide insight into the supply and demand dynamics of crypto assets. When the supply of an asset decreases on stock exchanges, it indicates that holders have a long-term view.
In this vein, exchange data IntoTheBlock's report on Ethereum showed that momentum was tilting towards the demand side as investors increased their accumulation of the industry's second-largest cryptocurrency since the start of the year.
More importantly, the releases of Ethereum trading totaled $906 million last week, marking eight straight weeks of capital outflows.
$906 million $ETH left exchanges this week, making it the eighth consecutive week of net outflows for the second-largest crypto asset pic.twitter.com/v7VuqFUSCf
– Intotheblock (@intotheblock) March 1, 2024
This trend towards exodus was reaffirmed by a comparable exchange metric on CryptoQuant. Since January 10, the total amount of Ethereum in exchange reserves has decreased by over 1 million ETH and currently stands at 13.7 million ETH.
Total crypto market cap is currently at $2.272 trillion. Chart: TradingView.com
What's next for Ethereum?
The massive exchange outflows can be attributed to Ethereum bulls looking to push the crypto to new highs. Ethereum is off to a good start sustained upward trend over the last few months for surpass majority of altcoins.
At the time of writing, the crypto is trading at $3,392, up 46% over the past 30 days. On the contrary, the increase in outflows from exchanges is a signal of a continued bullish trend and ETH is now on the verge of reaching the $3,500 mark again after a brief crossing 29 February.
The bullish action has prompted investors to be in a hurry in Ethereum reaching $4,000 again to reach its all-time high of $4,878. With supply decreasing on exchanges, the price of ETH is poised to increase. A breakout of the $4,000 level seems imminent, and from there a rise to $4,900 could happen quickly.
A crypto analyst known as Trader Alan underlines This recent price action allowed Ethereum to perfect a bullish breakout and retest the monthly chart. According to the price chart shared by the analyst, a strong upward move could see ETH reach $7,000 by the end of 2024, as well as surpass $10,000 and $15,000 in the coming years.
Featured image from Pexels, chart from TradingView
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