Can Ethereum rise? ETH has Record Withdrawal of US$500 Million from Exchanges

In the current panorama of the cryptocurrency market, despite a week without major increases, with ETH remaining close to US$2,300, movements in exchanges show a sign of optimistic sentiment.

On-chain analysis, specifically from IntoTheBlock, indicates that a significant amount of US$500 million in ETH was withdrawn from centralized platforms recently, accumulating a total of US$1.2 billion in the last month.

This phenomenon is not isolated. Following the approval of Bitcoin ETFs in the US, an upward trend was observed for Ethereum, reflected by a significant increase in exchange withdrawals. This activity was particularly intense in the last week, contributing to the expressive volume of departures for the month.

$500M in $ETH was withdrawn from CEXs this week, adding to a total of over $1.2B in outflows in the last month pic.twitter.com/e8NFOGtrDV

— IntoTheBlock (@intotheblock) February 2, 2024

Supply and demand dynamics suggest a promising future for ETH price. The decrease in Ethereum available for trading on exchanges could lead to a shortage, potentially increasing its value. Analysis from sources such as Cryptoquant and IntoTheBlock corroborate this theory, pointing to a possible price increase driven by reduced supply.

Although the scenario is optimistic, it is essential to maintain a balanced perspective. Movements in the cryptocurrency market are influenced by a variety of factors, and the withdrawal of ETH from exchanges is just one piece of the complex economic puzzle. Investors and industry enthusiasts should continue to monitor developments closely, considering both technical and fundamental indicators.

The recent massive withdrawal of Ethereum from centralized exchanges highlights a bullish sentiment in the market. At the time of publication, the price of BTC was quoted at US$2,278.73 with a drop of 1% in the last 24 hours.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.