Over $1.2 Billion in ETH Pulled from Exchanges – Can ETH Skyrocket to $5,000?

• The week’s ETH withdrawal amount exceeded 600,000 resulting in reduced exchange reserves from 19.2M to 18.6M as investors display positive market expectations.
• Investor shifts toward long-term investment indicate price appreciation potential through sustained outflows.
• The current market trends indicate that analysts predict ETH to reach $2,302.47 by April 9, 2025 while climbing 11.12% from its current value.

The past week has seen a significant movement of Ethereum (ETH) from crypto exchanges, with more than 600,000 ETH being withdrawn. This development comes amid fluctuating prices, with ETH current price hovering at $2,119.32 as the market experiences 1.8% decrease in a 24-hour period.

Ethereum Reserves Drop as Investors Withdraw

Data from CryptoQuant illustrates a sharp decrease in ETH reserves across all exchanges. The total ETH reserves at exchanges measured approximately 19.2 million on March 3rd of 2025. The ETH assets held in exchange reserves fell to 18.6 million during the period from March 3 to March 9. 

The exchange withdrawal pattern matches ETH price performance where its value peaked at $2,147.62 on March 3 before reaching $2,025.40 by March 9. Ethereum’s continuous withdrawal from trading platforms indicates changing investor opinions which might stem from speculations about upcoming price growth alongside institutional movement.

Ethereum Outflows Signal Shift Toward Long-Term Holding

The Ethereum blockchain data shows a continuous downward trend in exchange inflow/outflow numbers which reflects the withdrawal of ETH surpassing deposit activity. This declining netflow points to a potential shift toward long-term holding among investors. The market price of Ethereum rose above $4,000 during late 2023 before it dropped to the $2,000 level by March 2025.

Source:Coinglass

Investors demonstrated considerable asset movement in February and March since they appeared to plan ahead for future value rises while safely storing assets during market turmoil. The market value of Ethereum could rise more in the future because of diminishing circulating exchange-supplied coins due to regular investor withdrawals.

Future Outlook for Ethereum

A reduced market liquidity caused by ongoing exchange reserves depletion might drive Ethereum prices upward within medium-term and longer-term periods. The recent market data shows that Ethereum’s decreasing exchange holdings of ETH positions the market for potential new patterns in investment actions and price direction.

According to Coincodex analyst, Ethereum price prediction, the price of Ethereum is predicted to rise by 11.12% and reach $ 2,302.47 by April 9, 2025.