The Ethereum market has recently seen a notable shift, with significant outflows from centralized exchanges sparking discussions about the near term trajectory of the cryptocurrency.
Amid this, Ethereum has recorded a 2.4% decrease in the past 24 hours with a current trading price of $3,858, marking a 21.1% decrease away from its all-time high of $4,878 seen in 2021.
Ethereum Withdrawals from Binance Surpass 7.8 Million ETH
Data from CryptoQuant reveals that approximately 20.8 million ETH have been withdrawn from centralized exchanges in the past two months, a trend reminiscent of the 2021 bull market. Binance has played a central role in this movement, accounting for over 7.8 million ETH, which represents 33-39% of the total outflows.
These outflows could be indicative of investors accumulating ETH for long-term holding or staking purposes, as suggested by CryptoQuant analyst Crazzyblockk. The analyst added:
These significant outflows from Binance indicate the platform’s continued influence on the cryptocurrency market, especially in balancing supply and demand for Ethereum.
Notably, Binance’s influence is particularly evident given its global user base of 250 million and a record $21.6 billion in deposits this year, according to Crazzyblockk.
The substantial outflows from Binance align with bullish market sentiment, as large-scale withdrawals often signal investor confidence. These movements suggest that Ethereum holders are moving their assets off exchanges.
This reduction in the available supply of ETH on exchanges can create upward pressure on prices, should demand remains consistent or grows.
Etheruem Market Performance And Outlook
Ethereum has so far been struggling to make significant price move to the upside ever since the latest crypto market bull run began months ago.
Despite Bitcoin seeing consistent gains recording new all-time highs nearly every month, Ethereum has lacked enough upward momentum to push its price past the $4,000 barrier.
It is worth noting that this sluggish performance from Ethereum comes amid the positive developments ongoing in the crypto space including the recent news of Deutsche Bank, Germany’s largest lender reportedly working on its own layer-2 (L2) blockchain on Ethereum using ZKsync technology.
JUST IN: Deutsche Bank building its own Layer-2 on Ethereum – Bloomberg pic.twitter.com/5O5K3R1fRg
— Radar (@RadarHits) December 18, 2024
Regardless of such news, ETH has seen a slight increase of 2.3% in the past week, , a lower performance compared to that of Bitcoin’s 5% increase over the same period.
According to analysts, Ethereum could still likely see further correction in its price as bearish signals recently formed on its chart suggesting a potential drop to 3,400.
$ETH has formed a bearish double top, with RSI showing bearish divergence and a MACD crossover confirming the trend.
A short-term correction could bring it to $3,400, with major support at $3,200 and $3,000. #Ethereum #CryptoTrading #eth pic.twitter.com/iWaPh1vwrr
— crypto vulture Trader (@crypto_vulture1) December 18, 2024
Featured image created with DALL-E, Chart from TradingView