Crypto analytics platform IntoTheBlock has recently reported a substantial movement of Ether, the second-largest cryptocurrency by market capitalization, out of crypto exchanges. More than $1.4 billion worth of Ether has exited these platforms, suggesting a significant accumulation trend. The last time Ether saw such a high outflow was in November 2024.
According to IntoTheBlock’s data, the total exchange net flow of Ether (calculated by subtracting total outflows from total inflows) was a negative $60.57 million. This figure underscores the high amount of Ether leaving exchanges for wallets, signaling strong investor confidence. Seventy-four percent of Ether holders, according to the platform, had held onto the asset for over a year. Data from CryptoQuant echoed these findings, revealing massive Ether outflows from exchanges and indicating a low selling pressure amongst investors.
The past week saw significant Ether outflows from exchanges, with net outflows exceeding $1.4 billion. This figure is the highest since November 2024 and suggests that investors are increasingly opting to accumulate the asset rather than liquidate it. Additionally, there’s been a 1.04% rise in both the total exchange inflow and outflow in the last 24 hours, with more Ether flowing out than into exchanges. The negative net flow indicates an increasing trend of investors holding onto their Ether and a decrease in selling pressure.
The amount of Ether reserved on exchanges dropped slightly, by 0.12%, in the last 24 hours, however, the U.S. dollar value of the Ether reserved on exchanges actually increased by 0.34%. The number of transactions depositing Ether into exchanges also saw a slight increase of 1.05%, while the number of transactions withdrawing Ether from exchanges was much higher.
In the same vein, Ethereum whales, the market’s most substantial investors, moved $82.3 million worth of Ether from exchanges to private wallets. The drop in exchange-held Ether supplies coincided with increased activity from these whale addresses, suggesting a strategic repositioning by the market’s heavyweights.
This flurry of activity comes as Ethereum’s trading price sits at $3.258K, following an 8.8% decline over the past week. Despite this dip, high-value transfers significantly increased during Thursday’s trading session, signaling a shift toward long-term holding strategies.
Santiment’s transaction data highlighted an interesting pattern in whale behavior during this period. While small-scale whales and short-term Ether holders sparked a net selling pressure of over 120K Ether after the market’s decline on January 8th, large whales returned to action and accumulated 210K Ether.
Historically, such whale activity has indicated potential bottom formations or preceded market reversals. However, maintaining Ether’s price levels above $3,029 is crucial for bullish scenarios to play out. A breach below this threshold could trigger additional selling pressure, potentially testing the $2.8K level.
