Ethereum has seen a number of significant pullbacks, suggesting that cryptocurrencies are expecting a price recovery. These vast withdrawals caused ETH balances on centralized exchanges to drop to their lowest levels since 2016.
336,000 ETH withdrawn from exchanges
Crypto analyst Ash Crypto took to X (formerly Twitter). reveal a noticeable change in the amount of ETH currently held on centralized exchanges. Notably, there has been a significant raise in withdrawals from both tiny and vast investors, leading to the largest withdrawal trend in 2024 so far.
The report focuses on withdrawals from the Coinbase exchange, which is the largest cryptocurrency exchange in the United States. The raise in the withdrawal trend resulted in as much as 336,000 ETH being withdrawn from the exchange’s wallets in just 48 hours. This translates into the highest delisting trend so far this year.
However, Coinbase wasn’t the only cryptocurrency exchange to be hit strenuous by Ethereum withdrawals, as cumulative exchange addresses saw their ETH balances drop dramatically. As a tracker on the Santiment chain revealed in the report, total ETH held in centralized exchange wallets has declined by 8.6% in the last two weeks alone.
These withdrawals have significantly impacted exchange balances, causing them to fall to their lowest levels in 8 years. This means that the last time exchange balances were this low was in 2016, three bull markets ago.
Will this push Ethereum price to $10,000?
Naturally, Ethereum’s delisting from exchanges is sanguine, given that it’s a trend that suggests investors prefer to hold their Ethereum coins rather than sell them. If the coins moved in the opposite direction and were instead deposited on exchanges, this would be a price disadvantage as it would mean that investors wanted to offload their holdings in order to make a profit.
Crypto analyst Ash Crypto shares the opinion that the payouts are bullish relative to the price. According to the analyst, in addition to the fact that Spot Ethereum ETF transactions are scheduled to start in 2024, this means that the ETH price above $10,000 is only a matter of time.
Currently, the ETH price continues to closely follow the Bitcoin trend. The stock has climbed back above $3,500 after initially falling below support levels on Thursday. However, it continues to suffer losses on the weekly chart, with CoinMarketCap data showing a decline of 7.88%.
Featured image created with Dall.E, chart from Tradingview.com
